Gold prices rose on Wednesday as the escalating conflict in the Middle East attracted safe‑haven bids, while a pause in the U.S. dollar’s rally also lent support.
Spot gold was up 1.2 per cent to US$5,146.76 per ounce by 1628 GMT, after falling more than four per cent on Tuesday.
U.S. gold futures for April delivery added 0.7 per cent to $5,158.20.
“The dollar has seen a pullback, which is providing some support. Overall, the macro-fundamental factors remain broadly supportive of gold. Certainly, as long as the war with Iran is ongoing, that’s going to remain supportive as well,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
“There is risk that volatility continues. But I remain bullish and think we will see new all-time highs.”
The dollar eased after sharp gains on Tuesday. A softer dollar makes greenback-priced gold less expensive for holders of other currencies.
The U.S. and Israel pressed on with their round-the-clock assaults on Iran. A U.S. submarine sank an Iranian warship off the southern coast of Sri Lanka, U.S. Defense Secretary Pete Hegseth said, dramatically widening Washington’s pursuit of the Iranian navy.
Gold, a non-yielding asset that is considered a hedge against uncertainty and inflation, tends to be preferred during periods of low interest rates.
The ADP’s national employment report showed U.S. private payrolls increased more than expected in February, though data for the prior month was revised sharply lower.
Investors are turning their attention to the release on Friday of the U.S. employment report for February. Nonfarm payrolls likely increased by 59,000 jobs last month after accelerating by 130,000 in January, a Reuters survey of economists predicted.
Spot silver firmed two per cent to $83.69 per ounce after falling more than eight per cent in the previous session.
Spot platinum added 2.6 per cent to $2,137.30 while palladium rose 1.5 per cent to $1,672.38.
The World Platinum Investment Council said the global platinum market is heading for its fourth consecutive annual deficit in 2026.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Paul Simao and Krishna Chandra Eluri)
