Gold prices gained on Thursday as fears of an escalating conflict between Israel and Iran drove investors towards the safe-haven metal, while platinum scaled its highest level since September 2014.
Spot gold was up 0.2% at $3,374.49 an ounce at 1100 GMT US gold futures fell 0.5% to $3,391.00.
“We’re seeing some haven flows in gold, which is really not surprising given what’s happening … with the fighting between Iran and Israel,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.
Equity markets have dipped, which is also supporting the precious metal, Razaqzada added, Reuters reported.
Israel said on Friday it had struck Iran’s only functioning nuclear power plant on the Gulf coast, potentially a major escalation in its air war against Iran.
Meanwhile, the Fed held interest rates steady on Wednesday and policymakers still forecast cutting rates by half-a-percentage point this year, but have slowed their overall outlook for rate cuts in response to a more challenging economic outlook.
However, Fed Chair Jerome Powell cautioned against putting too much weight on this outlook, warning of “meaningful” inflation ahead as higher import tariffs loom.
Gold is considered a safe-haven asset during times of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment.
In other metals, platinum lost 2.5% to $1,289.71, having risen to its highest level since September 2014 earlier in the session.
Platinum prices are supported by rising Chinese imports, ongoing supply concerns, high lease rates and increased investor interest as high gold prices push consumers toward cheaper alternatives, analysts say.
“The supply-demand dynamics at play in the platinum market do hint at there being further upside in store for the price,” KCM Trade Chief Market Analyst Tim Waterer said.
Palladium lost 1.1% to $1,036.74, while silver fell 1.2% to $36.31 per ounce.
