Gold prices rose sharply in Asian trading on Thursday, regaining ground lost earlier in the week as renewed geopolitical tensions fueled a fresh wave of safe-haven demand. The precious metal jumped 1.3% to $3,331.34 an ounce, while June gold futures climbed 1.4% to $3,341.25.
Investor sentiment turned cautious again following mixed signals from Washington regarding a potential de-escalation of the U.S.-China trade conflict. President Trump hinted at a possible reduction of steep tariffs on Chinese goods—but with a catch: Beijing must first return to the negotiating table, a move it has resisted. The uncertainty surrounding these developments has kept markets on edge and demand for safe-haven assets intact.
Safe Havens Outperform as Dollar Weakens
Alongside gold, other traditional safe-haven assets such as the Japanese yen saw renewed buying interest. Meanwhile, the U.S. dollar and Treasury yields remained under pressure, reflecting investor unease over the global outlook.
Key drivers of gold’s recent rally:
- JP Morgan forecasts gold could touch $4,000/oz by 2026
- U.S.-China relations remain strained despite tariff rollback talk
- Russia-Ukraine ceasefire discussions deteriorate
- Weak U.S. dollar amplifies appeal of non-yielding assets
Adding to the uncertainty, Treasury Secretary Scott Bessent cast doubt on a swift U.S.-China resolution, noting that negotiations could remain stalled unless the U.S. takes the first step in easing tariffs. His remarks further dimmed hopes for a quick diplomatic breakthrough.
Russia Escalates Conflict as Talks Collapse
Safe-haven flows were additionally reinforced by a resurgence in Russia-Ukraine tensions, just as ceasefire discussions appeared to falter. On Wednesday, Moscow launched a missile and drone strike on Kyiv, marking one of the deadliest attacks in recent weeks.
The geopolitical outlook worsened after U.S. Vice President JD Vance hinted the U.S. might withdraw from peace efforts, following President Trump’s sharp criticism of Ukrainian leadership. Multiple senior U.S. officials also exited ceasefire talks in London, signaling a potential policy shift.
Snapshot of Thursday’s Commodities Moves:
- Platinum futures: +0.1% to $979.75/oz
- Silver futures: –0.4% to $33.39/oz
- Copper (LME): –0.1% to $9,371.35/ton
- U.S. Copper Futures: steady at $4.8348/lb
Despite recent corrections, gold remains near record levels just shy of $3,500/oz, with rising volatility and global uncertainty continuing to support its outlook. As markets await further developments, bullion’s role as a reliable hedge appears far from over.
