Gold prices were little changed on Friday, set to post their seventh successive month of gains, as concerns over US tariffs and US-Iran tension increased the metal’s safe-haven appeal.
Spot gold lost 0.1% to $5,181.18 per ounce at 0837 GMT. It has risen 6.5% so far this month, putting the seven-month winning run up by a whopping 58%.
Yields on the US 10-year Treasury bond fell to a three-month low, making gold even more attractive as the metal does not generate any interest.
“There are two things. The first one is the tariff uncertainty, which is there in the market right now. And the other one is the Iran and the US situation.”
The US and Iran held talks in Geneva on Thursday over their nuclear dispute, with the Omani mediator saying the two sides had made progress. The two countries will continue their talks with technical-level talks scheduled to take place next week in Vienna.
“The latest rounds of talks have not produced a clear outcome, leaving geopolitical risks present but not escalating. This has kept gold at elevated levels, though it has not yet provided sufficient momentum to establish a sustainable bullish trend.”
The US introduced a temporary new import tariff of 10% on all countries worldwide from Tuesday. However, the rate will be increased to 15% for certain countries, according to US Trade Representative Jamieson Greer.
In economic news, the number of US workers seeking jobless benefits increased slightly last week, but the unemployment rate remained unchanged in February.
Spot silver prices rose 1.7% to $89.87 per ounce, set to post a 6.2% gain so far this month.
Spot platinum prices climbed 4.1% to $2,365.33 per ounce, a four-week high, while palladium rose 2.1% to $1,821.28.
