The gold market advanced on Thursday, supported by rising geopolitical tensions and trade concerns that have strengthened the metal’s appeal as a safe haven asset.
Spot gold climbed 0.6 percent to $4,119.54 per ounce as of 0720 GMT, rebounding from a near two week low in the previous session. US gold futures for December delivery rose 1.7 percent to $4,134.60 per ounce.
Analysts said the gains reflect investor caution amid US sanctions on Russia and potential export restrictions on China, which have fueled uncertainty across global markets.
The Trump administration recently imposed Ukraine related sanctions on Russia, targeting major oil companies Lukoil and Rosneft for the first time in his second term.
At the same time, Washington is weighing restrictions on software powered exports to China, ranging from laptops to jet engines, in retaliation for Beijing’s rare earth export limits.
“Gold is attempting to find its footing following a healthy and sorely needed technical pullback,” said Han Tan, chief market analyst at Nemo.money.
“Persistent geopolitical risks should maintain safe haven bids, though the market has shown limited volatility in response to recent news.”
The gold market has traditionally performed well in low-interest rate environments, with investors expecting the Federal Reserve to implement further rate cuts.
The US Consumer Price Index report, delayed due to the government shutdown, is now scheduled for Friday and could influence the Fed’s policy outlook.
Market experts said sustained central bank buying, expectations of rate cuts, and geopolitical uncertainties have contributed to the strong performance of the gold market this year.
“Gold remains an effective portfolio diversifier,” said Mark Haefele, chief investment officer at UBS. “Further gains toward our upside target of $4,700 per ounce are possible if adverse macro and political developments continue.”
Eleanor Chen, senior economist at Global Markets Advisory, added, “Investors are increasingly wary of geopolitical events and trade disruptions, and gold consistently benefits from such uncertainty.
This is reflected in steady market demand for bullion.” The gold market has gained approximately 57 percent in 2025, reaching an all time peak of $4,381.21 per ounce earlier this week.
In comparison, other precious metals such as silver and platinum have posted smaller gains, highlighting gold’s unique role as a hedge against economic and political instability.
Global demand for gold has surged, fueled by investment inflows, central bank purchases, and ongoing concerns over international trade disputes.
In the United States, investors increasingly favor gold ETFs, while physical demand in India and China remains robust. Traders and market participants report heightened buying activity amid rising uncertainty.
“In the past few days, we’ve seen more clients purchasing gold coins and bars,” said Rajiv Patel, a gold dealer in Mumbai. “There is a clear sense of caution among buyers, and many are treating gold as a safe store of value in unpredictable times.”
In New York, a portfolio manager at a mid sized investment firm said, “Clients are diversifying into gold and other precious metals to protect portfolios against potential shocks from trade restrictions or geopolitical events.
Volatility in equities is driving more interest in traditional hedges.” Investors are watching both macroeconomic indicators and global political developments closely.
The US CPI report and any signals from the Federal Reserve regarding interest rates will be key drivers for the gold market in the near term.
“Market participants are monitoring macroeconomic data alongside geopolitical risks,” Tan said. “The gold market is likely to maintain its safe haven appeal, though major price spikes may be tempered by broader market conditions.”
Rising tensions between the US and China, including potential export restrictions, could further boost demand for gold as investors seek stability amid uncertainty. The gold market’s recent gains underscore its role as a hedge against geopolitical and economic risks.
With prices up sharply this year and demand remaining strong from both institutional and retail investors, analysts expect gold to continue serving as a safe haven asset.
While volatility may moderate extreme price swings, the metal is likely to remain a preferred tool for portfolio diversification amid uncertain global conditions.