Gold prices maintained stability near the $5,000 per ounce mark on Friday, following two consecutive sessions of increases. Investors remained attentive to growing geopolitical issues, such as the instability in the Middle East and summit between Russia and Ukraine, which continues to shape sentiment in precious metals markets.
Bullion surged more than 2% over the past two sessions. As of 2:27 P.M. (GMT+7) on Friday, spot gold rose 0.29%, or $14.46, to $5,013.42 per ounce. However, it remains on track for a modest weekly decline, partly due to reduced liquidity during the Lunar New Year holidays in Asia. Meanwhile, U.S. gold futures for April increased by 0.88%, or $48.80, to $5,041.20.
U.S. President Donald Trump signaled a tight timeline for diplomatic efforts with Iran, indicating that negotiations on a nuclear agreement would not extend beyond 10 to 15 days. This position was announced as the U.S. expanded its military presence to levels not seen since the period before the 2003 Iraq war.
In addition, markets also monitored diplomatic efforts between Russia and Ukraine. Recent talks in Geneva ended quickly after about two hours, with Ukrainian President Volodymyr Zelenskiy accusing Moscow of delaying substantive discussions. Meanwhile, European intelligence officials noted that Russia’s objectives focus on sanctions relief and strategic positioning rather than a swift conclusion to the conflict.
The gold market has witnessed increased volatility following a dramatic reversal late last month, when prices retreated sharply from historic highs above $5,595 per ounce to lows near $4,400 in a two-day span. The reversal followed a surge of speculative activity that pushed prices to record levels in January. Despite recent swings, longer-term factors such as a shift away from traditional government securities and currencies continue to support gold’s appeal.
Financial institutions including BNP Paribas, Deutsche Bank, and Goldman Sachs anticipate that gold prices may resume an upward path later this year. According to market strategists at Goldman Sachs, central banks are expected to remain prominent buyers as they seek to reduce exposure to political and economic instability globally, though their activity was tempered by high volatility in December.
