Gold prices ticked higher during Asian trade on Tuesday as improving risk sentiment across global financial markets supported the precious metal as market participants reacted to easing oil prices and signals that the conflict in the Middle East may be nearing an end.
By 3:15 pm AEDT (4:15 am GMT), the metal was trading 0.5% higher at US$5,163.20 per ounce.
Investor sentiment improved after United States President Donald Trump suggested the war with Iran could soon conclude.
Trump told CBS News on Monday: "I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force.”
The remarks helped fuel a rebound in equity markets and a sharp reversal in oil prices, which had surged roughly 25% to three-year highs during the height of the geopolitical tensions.
Additional reports that Washington may consider softening sanctions on Russian energy exports also contributed to the easing in energy prices and further supported the recovery in global risk appetite.
However, analysts warn that the outlook for energy markets remains uncertain, which could continue to influence gold’s trajectory in the near term.
Some Gulf producers have already reduced oil output amid disruptions to shipping through the Strait of Hormuz, a critical route for global energy supplies.
Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) pushed back against Trump’s comments, warning that Tehran, not Washington, will determine when the conflict ends.
According to Iranian state media, an IRGC spokesperson said Tehran would not allow “one litre of oil” to be exported from the region if U.S. and Israeli attacks continue.
Such statements have kept investors cautious despite the broader improvement in market sentiment.
For now, investors are turning their attention to key U.S. economic data due later this week, with February’s consumer price index scheduled for release on Wednesday (Thursday AEDT), and could provide fresh insight into the trajectory of inflation and the Federal Reserve’s policy outlook.
