Gold prices rise but remain rangebound with focus on Iran war de-escalation

Investing.com-- Gold prices rose in Asian trade on Tuesday, rising after a whipsaw session as market focus remained squarely on a de-escalation in the U.S.-Israel war with Iran and potential disruptions in oil supplies. 

Bullion rose amid a broader improvement in risk appetite as U.S. President Donald Trump claimed that the Iran conflict will end soon, and that Washington was also considering measures to help temper the spike in oil prices.

Spot gold rose 0.9% to $5,180.95 an ounce by 21:58 ET (01:58 GMT), while gold futures rose 1.7% to $5,190.86/oz. Spot prices rose marginally on Monday after logging wild swings during the session.

Iran responded to Trump’s comments by stating that it will decide when the war ends. The country had retaliated against U.S.-Israeli strikes by launching attacks on several surrounding Middle Eastern countries, while also attacking ships in the Strait of Hormuz. 

But despite this week’s gains, gold remained squarely in a $5,000-$5,200/oz trading range established over the past week, as traders parsed a storm of uncertainties facing the global economy. 

While the Iran conflict did spur haven demand for gold, its gains were tempered by concerns over the inflationary effects of the conflict, which could in turn elicit more hawkish stances from major global central banks. 

ANZ analysts noted that gold’s rally this year was hit with profit-taking as investors also sought liquidity amid a deep rout in global equity markets. 

Other precious metals advanced on Tuesday, with spot silver up nearly 6% at $89.1915/oz. Spot platinum rose 0.7% to $2,201.48/oz. 

Among industrial metals, LME copper futures rose 1.3% to $13,095.30 a tonne.