Gold Set for Strong February Finish as Geopolitical Tensions and Economic Uncertainty Fuel Safe-Haven Demand

Gold prices steadied in Asian trading on Friday and were on track to post solid gains for February, supported by persistent safe-haven demand amid rising geopolitical tensions and mounting economic uncertainty throughout the month.

Disruptions in U.S. trade policy, alongside concerns over slowing growth in the world’s largest economies, kept investors biased toward defensive assets, helping bullion recover most of its late-January losses.

Fresh geopolitical risks also added to haven demand late in the week, after reports of fighting breaking out between Pakistan and Afghanistan. While the conflict remains localized, it nonetheless reinforced risk-averse sentiment in global markets.

Gold rebounds sharply, erasing late-January losses

Spot gold was steady at $5,187.18 per ounce by 00:12 ET (05:12 GMT), while April gold futures edged up 0.2% to $5,203.61 an ounce.

Bullion was up about 6.7% for February, having staged a strong rebound from early-month lows after a speculative rally unraveled rapidly at the end of January. Spot prices had fallen to around $4,600 per ounce in early February before sentiment turned decisively more supportive.

Geopolitical tensions involving Iran were a key catalyst for gold’s recovery. Washington boosted its military presence in the Middle East and warned of potential action if Tehran failed to accept a nuclear agreement. While talks between the U.S. and Iran ended this week without a deal, both sides agreed to continue negotiations, tempering immediate fears but keeping risk premiums elevated.

Uncertainty surrounding the U.S. economy also underpinned gold’s gains. A Supreme Court ruling that struck down most of President Donald Trump’s trade tariffs added to policy confusion, after Trump responded by announcing new levies under a different legal framework and threatened further measures. The prospect of renewed trade disruptions kept investors cautious.

Precious metals shine; copper lags amid China focus

Other precious metals also advanced on Friday and were set to cap a strong February performance. Spot silver rose 1.7% to $89.78 per ounce and was up roughly 6% for the month. Platinum jumped 3% to $2,351.63 per ounce, lifting its February gain to about 8.4%.

Among industrial metals, copper prices edged higher but posted only modest gains for the month, as traders awaited clearer signals on demand from China, the world’s largest consumer.

Benchmark copper futures on the London Metal Exchange rose 0.2% to $13,333 per ton, up about 1.2% in February. COMEX copper futures gained 0.4% to $6.0480 per pound, also up just over 1% for the month.

Copper’s subdued performance was largely attributed to reduced activity during China’s Lunar New Year holiday, which kept mainland markets closed for more than a week. ANZ analysts noted that both Chinese and global copper inventories rose more than expected during the break, amid mining and trade disruptions.

With Chinese markets reopening this week, attention is now turning to renewed buying activity. Copper demand is expected to strengthen in the coming quarters, particularly as global investment in artificial intelligence infrastructure accelerates.