Gold rebounds, benefiting from the dollar’s decline

Gold prices rose today, supported by the decline in the dollar and increased demand for safe haven assets in light of the uncertainty surrounding the US tariff policy and the talks between the United States and Iran.

Gold rose in spot transactions 0.3 percent to $5,183.85 per ounce by 02:58 GMT.

On Tuesday, gold prices recorded their highest level in more than three weeks.

US gold futures for April delivery fell 0.5 percent to $5,200.50.

“The price movement reflects the return of uncertainty surrounding the new policy (on tariffs), geopolitical concerns and the decline of the dollar,” said Christopher Wong, an analyst at OCBC.

The dollar fell in early trading today, as Nvidia’s better-than-expected profits boosted investor sentiment, while markets awaited details regarding the latest US customs duties on imports.

A fall in the dollar would lower the price of dollar-denominated gold for holders of other currencies.

Iran and the United States are scheduled to hold the latest round of talks in Geneva today, aiming to settle their dispute over the long-standing nuclear program and avoid new US strikes on Iran after large-scale military buildups.

As for other precious metals, silver in spot transactions fell 0.6 percent to $88.84 per ounce after rising to its highest level in three weeks on Wednesday.

Platinum in spot transactions fell 0.5 percent to $2,274.16 per ounce, while palladium fell 1.4 percent to $1,770.05.

In the previous session, both metals reached their highest levels in three weeks.