Gold prices rose during Asian trading on Tuesday, although the metal remained confined within a narrow range as investors looked for clearer signals about a potential de-escalation in the U.S.–Israel conflict with Iran.
The precious metal gained as overall risk sentiment improved after U.S. President Donald Trump suggested the conflict with Iran could end soon and indicated that Washington was considering steps to ease the recent surge in oil prices.
Spot gold climbed 0.8% to $5,175.48 per ounce by 01:55 ET (05:55 GMT), while gold futures advanced 1.6% to $5,184.79 per ounce. Spot prices had ended Monday only slightly higher after swinging sharply during the trading session.
Gold holds within $5,000–$5,200 band amid mixed safe-haven demand
Gold continued to trade within the $5,000–$5,200 per ounce range established over the past week, as investors weighed a range of uncertainties affecting the global economic outlook.
Although the conflict with Iran has supported demand for safe-haven assets such as gold, gains have been limited by concerns that the war could fuel inflationary pressures, which in turn may prompt major central banks to adopt more hawkish policy stances.
Analysts at ANZ noted that gold’s rally earlier this year had faced bouts of profit-taking as investors also sought liquidity during a sharp downturn in global equity markets.
Other precious metals also advanced on Tuesday, with spot silver rising nearly 6% to $89.1915 per ounce. Spot platinum gained 0.7% to $2,201.48 per ounce.
Among industrial metals, copper futures on the London Metal Exchange increased 1.3% to $13,095.30 per tonne.
Trump signals possible de-escalation and oil supply measures
Investor appetite for risk improved on Tuesday while oil prices moved lower after Trump said multiple times on Monday that the conflict with Iran could be nearing an end.
He also highlighted possible steps to reduce supply disruptions linked to the war, including temporarily easing sanctions on certain oil exporters, particularly Russia.
However, Trump did not provide a clear timeline for any de-escalation and continued to adopt a largely hawkish tone toward Tehran. He warned that Iran would face severe consequences if it attempted to block the Strait of Hormuz.
“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them,” Trump said.
Iran rejected Trump’s statements and said it would continue to block the Strait of Hormuz until U.S. and Israeli attacks on Tehran cease.
The conflict entered its eleventh consecutive day on Tuesday, with tensions in the Middle East showing little sign of easing.
A prolonged confrontation is expected to continue supporting gold prices, as demand for safe-haven assets remains elevated amid the risk of inflation shocks linked to oil markets.