West Asia Tensions Fuel Safe-Haven Buying in Gold and Silver
Gold prices rose on Tuesday due to renewed safe-haven demand as tensions in West Asia persisted, while silver outperformed gold by climbing nearly 2% ahead of key US jobs data.
The uncertainty over the conflict in West Asia has boosted demand for assets such as gold, which investors seek as protection from geopolitical risks and market volatility. COMEX gold traded at $4,115.90 an ounce, up 0.62%, while COMEX silver gained 1.91% to $58.96 an ounce in early trade.
US President Donald Trump said talks with Iran were underway and described them as Tehran's 'last chance' to reach an agreement, but Iran denied any negotiations or plans for one. This conflicting information has further fueled safe-haven buying, with gold continuing to find support from the ongoing uncertainty.
However, expectations of higher US interest rates are limiting further gains in bullion prices. Markets currently assign a roughly 65% probability that the Federal Reserve will raise interest rates at its September meeting after keeping rates unchanged last week.