Middle East tensions, tariff jitters push gold to one-week high
Gold prices rose 1% to a one-week high on Thursday as tensions in the Middle East and trade uncertainties fuelled demand for the safe-haven asset.
Spot gold was up 0.9% at $3,382.61 an ounce as of 1123 GMT, after hitting its highest level since June 5 earlier in the day.
U.S. gold futures climbed 1.8% to $3,403.0.
The U.S. dollar index fell 0.8% to a more-than-three-year low, making dollar-priced bullion more attractive to overseas buyers.
"You have Middle East tensions and equity markets dropping because of renewed uncertainty about the trade situation. All of that is helping to boost the appeal of haven assets," said Fawad Razaqzada, market analyst at City Index and FOREX.com.
U.S. President Donald Trump said on Wednesday he might extend the July 8 deadline for completing trade talks with countries before higher U.S. tariffs take effect, while letters to other countries to accept or reject trade terms would soon be sent out.
Washington and Beijing have agreed on a framework to restore a fragile truce in the U.S.-China trade war, potentially avoiding higher tariffs.
In a sign of increased Middle East volatility, Trump said on Wednesday U.S. personnel were being moved out of the region as it could be a "dangerous place" and that the United States would not allow Iran to have a nuclear weapon.
Gold, a safe-haven asset, often thrives during times of economic uncertainty and in low-interest-rate environments.
Investors are now turning their focus to the U.S. Producer Price Index (PPI) data due at 1230 GMT, ahead of the Federal Reserve's meeting on June 17–18.
"PPI will be watched to see whether they can spring a CPI-like surprise or whether expectations for rising input prices will be confirmed," said Ole Hansen, head of commodity strategy at Saxo Bank.
Elsewhere, spot silver was steady at $36.24 per ounce, platinum rose 0.7% to $1,264.57, hovering at a more-than four-year high, while palladium was down 1.7% at $1,062.04.
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