Gold prices remained firm in early Asian trading on Thursday as markets positioned for a fresh round of nuclear talks between the United States and Iran scheduled for later today. The precious metal has been supported by a softer U.S. dollar and ongoing safe-haven demand amid geopolitical and economic uncertainty.
Spot gold was reported slightly higher, trading above key technical levels and attracting dip buyers as traders weighed broader market risks ahead of the diplomatic discussions. The U.S. dollar’s continued weakness — partly driven by strong earnings from major tech firms — has made gold more attractive for holders of other currencies.
Markets are now looking closely at negotiations in Geneva between U.S. and Iranian delegates aimed at addressing Tehran’s nuclear program and averting further conflict in the Middle East. Any sign of breakdown or escalation could lead to increased flows into safe-haven assets like gold.
Market Drivers
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Geopolitical tensions: Uncertainty over the outcome of the U.S.–Iran talks continues to underpin gold’s appeal as a defensive asset.
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U.S. trade policy concerns: High uncertainty over U.S. tariff decisions following recent court rulings has added to market caution, supporting bullion.
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Currency moves: The softer U.S. dollar has helped buoy gold prices in Asian trade.
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Upcoming data: Investors are also monitoring key U.S. economic data, including jobless claims and producer price reports, for clues on monetary policy direction.
By - Shahzad Ahmad
Frequently Asked Questions
Why is gold steady ahead of the U.S.–Iran talks?
Gold is holding firm as investors avoid aggressive positions before negotiations between the U.S. and Iran. Markets typically stay cautious during major geopolitical events, supporting safe-haven demand
How could the U.S.–Iran talks impact gold prices?
If negotiations break down or tensions escalate, investors may move into safe-haven assets like gold, pushing prices higher. A diplomatic breakthrough, however, could reduce geopolitical risk and pressure gold lower in the short term.
What role is the U.S. dollar playing in gold’s movement?
Gold often moves inversely to the U.S. dollar. A weaker dollar makes gold cheaper for foreign buyers, supporting prices. Current softness in the dollar is helping gold stay elevated.
Are economic data releases also affecting gold?
Yes. Traders are closely watching U.S. inflation data, jobless claims, and Federal Reserve rate expectations. Lower interest rate expectations generally support non-yielding assets like gold.
What levels are traders watching now?
Market participants are monitoring key support zones below $5,150 and resistance near the $5,200 area. A breakout on either side could determine the next short-term trend.
