Gold steady near $5,180 as US and Iran extend nuclear talks amid regional tensions

Gold prices were little changed as the United States and Iran agreed to extend nuclear negotiations, balancing cautious diplomatic optimism against rising geopolitical tension in the Middle East.

Spot bullion hovered near $5,180 an ounce in Asian trading, following a 0.4% gain in the previous session and positioning the metal for a weekly advance. The relative calm in prices came after Washington and Tehran confirmed they would resume talks next week, with mediator Oman describing the latest round as having made “significant progress.”

However, officials familiar with the US position signaled that American negotiators left the discussions less encouraged than public statements suggested, underscoring the fragility of the diplomatic track.

Geopolitical premium remains

The US and Iran remain locked in a tense standoff over Tehran’s nuclear program. President Donald Trump has ordered the largest American military build-up in the Middle East since 2003, reinforcing market concerns about the potential for escalation even as diplomacy continues.

That backdrop has helped underpin gold’s recent resilience. Safe-haven demand has remained elevated, particularly as investors weigh geopolitical risk alongside broader trade tensions and concerns about the long-term purchasing power of the dollar.

Gold has advanced around 20% so far this year and has stabilized back above the $5,000 threshold after a sharp pullback from record highs reached in late January. The metal is now on course for a seventh consecutive monthly gain — a streak not seen since the early 1970s.

ETF flows turn positive

As volatility has eased, investor appetite through exchange-traded funds has strengthened. Weekly inflows into gold-backed ETFs have more than offset the outflows recorded earlier in February, signaling renewed institutional interest after the recent correction.

The recovery in ETF demand suggests that longer-term holders continue to view price dips as entry opportunities rather than exit points.

Fed outlook adds another layer

Monetary policy expectations are also influencing the outlook. Comments from Austan Goolsbee indicated that multiple interest-rate cuts remain possible this year if inflation continues to decline. Meanwhile, Stephen Miran reiterated his view that rates should ultimately fall by a full percentage point in 2026.

While recent labor-market data have shown signs of improvement, investors remain attentive to the Federal Reserve’s next steps, particularly as political pressure mounts for easier policy.

Broader metals complex advances

Elsewhere in precious metals, silver climbed about 2% to trade near $90 an ounce, while platinum and palladium posted stronger gains. The Dollar Spot Index was broadly flat, offering limited directional pressure for bullion.

For now, gold appears anchored between competing forces: incremental diplomatic progress on one side and sustained geopolitical and monetary uncertainty on the other. As long as that balance holds, prices may consolidate near current elevated levels — with any setback in talks or escalation in tensions likely to reignite upward momentum.