Gold prices retreated in Asian trading on Thursday, weighed down by a stronger U.S. dollar following the Federal Reserve’s hawkish stance. However, rising geopolitical tensions between the U.S. and Iran helped limit deeper losses. Meanwhile, platinum surged to its highest level in over a decade, supported by tight supply and robust demand.
Spot gold dipped 0.5% to $3,353.92 per ounce, while August gold futures dropped 1.1% to $3,369.77 by 02:15 ET (06:00 GMT). The decline followed the Fed’s decision on Wednesday to hold interest rates steady while signaling a reduced likelihood of rate cuts this year.
Despite global geopolitical unease—particularly surrounding a possible U.S. strike on Iran—investors showed caution, with bullion prices remaining under pressure from the Fed’s outlook. A stronger dollar often dampens gold’s appeal as it becomes more expensive for holders of other currencies.
Rising Tensions in the Middle East Stir Caution
According to a Bloomberg report, senior U.S. officials are preparing for a potential strike on Iran, with the coming weekend seen as a possible timeframe. The situation follows renewed hostilities and comments from Iran’s Supreme Leader Ayatollah Ali Khamenei, who rejected calls for diplomatic compromise and declared that neither war nor peace could be imposed on the Islamic Republic.
U.S. President Donald Trump added to the uncertainty by stating on Wednesday that a military strike on Iran remains a possibility, though he offered no timeline.
Such rising geopolitical risks typically bolster safe-haven assets like gold. However, the Fed’s resistance to immediate rate cuts has prevented bullion from capitalizing on the broader risk-off sentiment.
Lower interest rates generally support gold, a non-yielding asset, by reducing the opportunity cost of holding it. But with the Fed prioritizing inflation control and warning of tariff-related price pressures, investor expectations for monetary easing have cooled.
Platinum Soars to Highest Level Since 2014
In contrast to gold, platinum prices rallied strongly, reaching levels not seen since September 2014. The metal has gained on a potent mix of low inventories, high lease rates, and robust demand—particularly from Chinese jewelers and industrial sectors.
Although platinum futures slipped 0.5% to $1,313.0 per ounce in the latest session, prices had earlier surged to over $1,320, marking a new decade high.
A bullish industry outlook published in late May helped spark the recent rally, as supply constraints continue to fuel interest in the metal. Analysts note that investors are increasingly considering platinum as a viable alternative to gold, especially amid shifting economic and monetary conditions.
Other Metals Weaken as Dollar Strengthens
Broader industrial metals declined on Thursday, pressured by the Fed’s hawkish policy tone and a stronger U.S. dollar.
Silver futures fell 1.5% to $36.665 per ounce, reversing recent gains. Copper also weakened, with benchmark London Metal Exchange contracts down 0.3% at $9,644.35 per ton. U.S. copper futures dropped 0.7% to $4.8205 per pound.
Traders say metals may remain volatile in the coming sessions, influenced by ongoing central bank moves, trade policies, and unfolding developments in the Middle East.
