Gold prices held firm in Asian trading Friday, hovering close to $5,200 an ounce and closing out February with strong gains. Spot gold stood at $5,187.18 per ounce at 00:12 ET (05:12 GMT), while April gold futures edged 0.2% higher to $5,203.61.
For the month, spot gold climbed 6.7%, recovering most of the losses seen in late January. Earlier in February, prices had slipped as low as $4,600 per ounce after a speculative rally quickly unraveled. The rebound underscores gold’s traditional role as a financial shelter when uncertainty rises.
Investors sought safety amid growing geopolitical tensions and economic concerns. Reports of conflict between Pakistan and Afghanistan added to market anxiety, though the situation remains contained to the two South Asian nations. At the same time, tensions involving Iran and the United States intensified. Washington deployed additional naval assets to the Middle East and warned of possible military action if Tehran refused a nuclear agreement. While talks concluded without a deal, both sides agreed to continue discussions, offering limited optimism.
Uncertainty over U.S. economic policy also fueled demand. A Supreme Court ruling struck down most of President Donald Trump’s trade tariffs. In response, the administration announced new tariffs under a different legal framework and signaled further levies could follow. Markets reacted cautiously, as shifting trade rules can disrupt global growth.
In simple terms, when investors feel unsure about wars or economic policies, they often buy gold. That extra buying pushes prices higher.
Key February Moves:
- Spot gold: $5,187.18/oz, up 6.7% in February
- April futures: $5,203.61/oz, up 0.2% Friday
- Early-February low: $4,600/oz
Silver and Platinum Rally
Gold was not alone. Other precious metals also delivered strong February gains, reflecting broad demand for hard assets.
- Spot silver rose 1.7% Friday to $89.7785/oz, up 6% this month
- Spot platinum gained 3% to $2,351.63/oz, advancing 8.4% in February
These metals often move alongside gold during periods of uncertainty, though platinum’s sharper rise suggests added industrial demand as well.
Copper Gains as China Returns
Industrial metals told a more measured story. Copper prices ticked higher but posted only mild monthly gains.
Benchmark copper futures on the London Metal Exchange rose 0.2% to $13,333 per ton, up 1.2% in February. COMEX copper futures gained 0.4% to $6.0480 per pound, advancing 1.1% for the month.
February’s muted performance was partly due to China’s Lunar New Year holiday, which kept mainland markets closed for more than a week. During that time, copper inventories in China and globally increased, according to ANZ analysts, amid mining and trade disruptions.
With Chinese markets now reopened, traders are watching for renewed buying. Demand for copper is expected to grow in coming quarters as artificial intelligence infrastructure expands, requiring large amounts of wiring and electronic components.
For now, gold remains the standout performer—its 6.7% monthly rise signaling that in uncertain times, investors still turn first to the oldest safe haven.