Gold prices maintained their stability on Thursday as investors analyze the escalating Iran-Israel conflict, while platinum prices hit September 2014 highs.
Gold spot prices settled at $3369 an ounce as of 09:55 GMT, while US gold futures fell 0.6% to $3387.
Iranian missiles hit an Israeli hospital on Thursday, while Israel continues to target vital sites inside Iran, with US President Trump hinting at a potential entry into the war.
Fed’s Policy Boost Gold
The Federal Reserve maintained interest rates unchanged while expecting 0.5% of rate cuts this year despite the challenging economic outlook.
Fed Chair Powell continued to warn against potentially higher inflation due to tariffs.
Gold is a beneficiary of low interest rates, and is also sought in times of instability.
Platinum at Historic Highs
Platinum dipped 2.5% to $1,288 an ounce after earlier spiking to September 2014 highs.
Platinum is boosted by higher Chinese imports and supply concerns and higher mineral rental prices, with investors also seeking cheaper gold alternatives.
Higher demand outlook, combined with wobbly supplies and supportive technical signals continue to boost platinum prices.
Fears of US tariffs also led to a surge of platinum shipments into the US, which raised the costs of storing the metal.
Current one-month rent rates for platinum is now up 13.5% y/y,
Supply Deficit
The International Platinum Investment Council expects the market to suffer a supply deficit of a million ounces this year.
Platinum is used in lab equipment and auto catalytic inverters, and is also considered an investment asset.
Platinum is up 32% so far this year, outperforming gold’s 26% surge in the same period.
