On Thursday, gold saw a rise, fueled by the intensifying conflict in the Middle East, leading investors to turn to this safe-haven asset. Furthermore, a declining dollar played a role in driving bullion prices higher. Spot gold rose by 0.8% to $5,176.69 per ounce as of 0101. Gold futures in the U.S. for April delivery rose by 1%, hitting a price of $5,186.30. The U.S. dollar saw a minor drop, leading to a reduction in the price of gold in dollars for those holding other currencies. The conflict between the U.S. and Iran intensified on Wednesday after a U.S. submarine sank an Iranian warship near Sri Lanka, leading to a death toll of at least 80 individuals.
NATO air defenses effectively intercepted an Iranian ballistic missile targeting Turkey. The recent escalation coincided with the emergence of the influential son of Iran’s deceased supreme leader as a leading candidate for succession, indicating that Tehran remains steadfast in the face of external pressures, just five days following the initiation of a military campaign by the U.S. and Israel that has resulted in numerous casualties and significant turmoil in global markets.
Gold, typically seen as a secure investment, has risen by about 20% this year, reaching new record highs amid growing global political and economic instability. U.S. President Donald Trump has officially put forward the nomination of former Federal Reserve Governor Kevin Warsh to take on the role of the next chair of the U.S. central bank, as stated by the White House, furthering the president’s goal to select a Fed leader in favor of rate reductions. Markets expect that the Federal Reserve will keep interest rates steady after its two-day meeting on March 18, according to CME Group’s FedWatch tool.
Investors are currently looking forward to the release of the weekly U.S. jobless claims data later today, along with the U.S. employment report for February set for Friday. Spot silver rose by 1.2%, hitting $84.43 per ounce. Spot platinum rose by 2.1% to $2,193.65, while palladium saw an increase of 0.5% to $1,683.