Gold prices were mostly stable on Friday, trending higher for the seventh consecutive month, as uncertainty over U.S. tariff policy and tensions between the U.S. and Iran increased gold’s appeal as a safe-haven asset.
Spot gold was down 0.1% at $5,181.18 an ounce by 0837 GMT. The metal is up 6.5% so far in February, bringing its seven-month gain to a whopping 58%.
US gold futures for April delivery rose 0.1% to $5,198.10.
On the day, the benchmark 10-year Treasury yield fell to its lowest level in three months, reducing the opportunity cost of holding interest-free gold.
“There are two factors (supporting gold): one is the tariff uncertainty that is currently in the market and the other is the situation with Iran and the US,” said ANZ analyst Soni Kumari.
The United States and Iran held indirect talks in Geneva on Thursday over their long-running nuclear dispute, with an Omani mediator saying both sides had made progress. Negotiations are expected to resume at technical level talks scheduled for next week in Vienna.
“Recent talks have yielded no clear results, and geopolitical risks are present but not escalating. This has kept gold at elevated levels, but the momentum is not yet strong enough to establish a sustained bullish trend,” said Linh Tran, senior market analyst at XS.com.
The United States on Tuesday tentatively began collecting a new 10% import tariff worldwide. However, U.S. Trade Representative Jamieson Greer said the tax rate would rise to 15% in some countries.
On the data front, the unemployment rate remained stable in February, although the number of Americans filing new claims for unemployment benefits rose slightly last week.
Spot silver rose 1.7% to $89.87 an ounce, heading for a 6.2% gain for the month.
Spot platinum rose 4.1% to $2,365.33 an ounce, a four-week high, while palladium rose 2.1% to $1,821.28.
