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Gold prices gained on Thursday, June 19, as the Iran-Israel tension entered its seventh day, while platinum rose to a more than 10-year high on expectations of a supply shortfall.
Spot gold was up 0.1 per cent at $3,371.15 an ounce, as of 0526 GMT. US gold futures fell 0.6 per cent to $3,388.60.
Read-Gold gains as Israel-Iran crisis lifts safe-haven appeal
“Gold has made a modest bounce as we await the next steps in the Israel-Iran conflict. If the US does decide to get directly involved, this could raise the geopolitical stakes,” KCM Trade Chief Market Analyst Tim Waterer said.
Gold edges up amid heightened geopolitical tensions
Gold is often used as a safe store of value during times of geopolitical and financial uncertainty.
Meanwhile, the US Federal Reserve held interest rates steady on Wednesday. Fed policymakers still forecast slashing rates by half-a-percentage point this year, but they have slowed the pace of future cuts.
However, Fed Chair Jerome Powell cautioned against putting too much weight on this outlook, warning of “meaningful” inflation ahead as higher import tariffs loom.
Elsewhere, platinum rose 1 per cent to $1,336.08. Earlier in the session, the metal hit $1,348.72, its highest level since September 2014.
Platinum surges to 10-year high on supply concerns
“Platinum lease rates are high, so the refineries are not looking to manufacture because the cost is much higher. So demand is coming, but there’s not enough supply… above ground inventory is tight,” said Brian Lan, managing director at GoldSilver Central, Singapore.
Platinum lease rates refer to the cost of borrowing platinum for a set period of time. High lease rates can indicate a shortage of platinum in the market.
