Gold price rises as investors seek safety amid Israel-Iran conflict, Trump’s warning 

SINGAPORE: Gold prices edged higher on Tuesday as mounting tensions between Iran and Israel, along with a stark warning from US President Donald Trump, drove investors towards safer assets. 

Spot gold rose 0.2 per cent to $3,388.57 an ounce by 04:18 GMT, following a decline of more than 1 per cent on Monday. US gold futures slipped 0.3 per cent to $3,407.20. 

The renewed demand for gold came amid heightened anxiety in global markets after Israel reportedly struck Iran’s state broadcaster in what marked the fifth consecutive day of cross-border fighting.  

In a separate development, the UN’s nuclear watchdog confirmed “extensive damage” at Iran’s largest uranium enrichment facility, raising fears of further instability. 

President Trump, who returned to Washington late Monday from the G7 summit in Canada, urged Iranian citizens to evacuate Tehran. His call followed Iran’s rejection of a proposed deal to limit its nuclear weapons programme. US media also reported that Trump had instructed the National Security Council to remain on standby in the Situation Room. 

“Sentiment in the market is swinging back and forth with every new development out of the Middle East,” said Tim Waterer, chief market analyst at KCM Trade. “This constant shift between escalation and de-escalation is keeping gold tethered close to the $3,400 level.” 

Gold is traditionally seen as a safe-haven asset during times of geopolitical or economic stress, and analysts say the current backdrop of military and diplomatic uncertainty is likely to continue supporting prices. 

Investors are also awaiting the outcome of the US Federal Reserve’s two-day policy meeting, which begins later on Tuesday. While interest rates are expected to remain unchanged, attention is focused on the outlook Chair Jerome Powell will provide. Markets are currently pricing in two rate cuts before the end of the year. 

Among other precious metals, silver was up 0.2 per cent at $36.41 per ounce, platinum rose 0.2 per cent to $1,248.17, and palladium gained 0.2 per cent to $1,031.13. 

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