Gold rose on Tuesday as rising geopolitical uncertainty stemming from the Israel-Iran row and U.S. President Donald Trump's call to evacuate Tehran prompted investors to seek safe-haven assets.
Spot gold was up 0.4% at $3,396.67 an ounce, by 0239 GMT, after falling more than 1% on Monday.
U.S. gold futures were steady at $3,416.30.
"Market sentiment continues to fluctuate between escalation and de-escalation regarding events in the Middle East, and it is this shift in sentiment back and forth that is driving gold prices either side of the $3,400 level," said Tim Waterer, chief market analyst at KCM Trade.
A fifth straight day of fighting between Israel and Iran saw Israel attack Iran's state broadcaster on Monday, while the head of the U.N. nuclear watchdog reported severe damage to Iran's largest uranium enrichment facility.
Trump, who returned early from a G7 summit in Canada on Monday night, urged Iranians to evacuate Tehran, citing the country's rejection of a deal to curb its development of nuclear weapons.
Reports also suggested that Trump had asked the national security council to remain in the situation room.
Gold is considered a safe haven asset during times of geopolitical and economic uncertainty.
"There is enough uncertainty prevailing around the tariff war and the actual war to support gold prices and keep them in view of a potential return to $3,500," Waterer said.
Investors are also looking ahead to the US Federal Reserve meeting scheduled to begin later in the day, with a decision due on Wednesday.
The Fed is widely expected to keep interest rates steady but focus will once again be on the path charted by Chairman Jerome Powell for future rate cuts. Traders are currently pricing in two rate cuts by the end of the year.
Elsewhere, spot silver rose 0.3% to $36.41 an ounce, platinum rose 0.6% to $1,251.20, while palladium edged up 0.2% to $1,031.68. (alg)
Source: Reuters
Gold (XAU/USD) struggles to capitalize on its intraday bounce from the $3,627-3,626 region and trades with a negative bias through the first half of the European session on Monday. Rising bets for a ...
Gold (XAU/USD) attracts some dip-buyers near the $3,627-3,626 region during the Asian session on Monday, though it lacks follow-through and remains confined in a one-week-old range. Rising bets for a...
Gold edges lower in early morning Asian session on a likely technical correction after front-month Comex gold futures posted their longest winning streak since March 28, 2025 last week. "The market m...
Gold prices rise over 0.44% during Friday's North American session as weaker than expected jobs market data increased the chances that the Federal Reserve (Fed) will cut interest rates next week. At t...
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this ...
The US dollar weakened in trading on Monday (September 15th), as investors remained cautious ahead of a crucial week filled with central bank decisions, particularly from the Federal Reserve (The Fed). The Dollar Index (DXY), which measures the...
Oil prices were little changed on Monday as investors assessed the impact of Ukrainian drone attacks on Russian refineries, while U.S. President Donald Trump said he was prepared to impose sanctions on Russia if NATO nations stop buying Russian...
After a nine-month pause, the US Federal Reserve is expected to resume its cycle of interest rate cuts this week. The big question is how far will it go? US President Trump has already made it clear that he wants to see cuts to a key interest rate...
The Nasdaq Composite notched a perfect week of closing highs on Friday as investors took signs of weakening jobs and tame inflation to mean the...
The University of Michigan consumer sentiment for the US dropped to 55.4 in September 2025, down from 58 in August and well below market...
Wall Street indexes opened subdued on Friday after notching record highs in the previous session, though they remained on track to log gains in a...
U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its...