Gold Prices Rise Amid Geopolitical Tensions and Dollar Weakness

The price of gold increased by 0.4% to $5,192.28 per ounce on Thursday. Earlier in the week, on Tuesday, quotes reached their highest level in over three weeks.

Analysts attribute the upward movement to a reassessment of political risks, including potential new tariffs, ongoing geopolitical tensions, and a weakening US dollar. "The price dynamics reflect a reassessment of new political risks (including tariffs), geopolitical tension, and dollar weakness," said Christopher Wong, a strategist at OCBC.

Market participants are currently weighing multiple factors. In the short term, a period of consolidation with mixed directions is likely as markets evaluate geopolitical risks, fluctuations in the US dollar, potential tariff surprises, and uncertainty surrounding Federal Reserve policy.

A key event being watched is a new round of negotiations between Iran and the United States scheduled for Thursday in Geneva. The talks aim to resolve the protracted nuclear dispute and prevent further American strikes against Iran amidst a significant regional military buildup.

Other precious metals showed mixed performance. The price of silver edged down by 0.1% to $89.29 per ounce after climbing to a three-week high on Wednesday.

Platinum gained 0.3%, trading at $2,292.83 per ounce. In contrast, palladium declined by 0.2% to $1,791.79 per ounce. Both platinum and palladium had also hit three-week highs during the previous trading session.