Gold Swings on Israel-Iran Conflict and Trump’s Tariff Pressures

​Gold prices fluctuated sharply as traders tracked intensifying military conflict between Israel and Iran, combined with mounting global economic uncertainty stemming from President Trump’s aggressive tariff agenda.

Prices briefly rallied near $3,380 an ounce before erasing gains, after reports suggested Israeli airstrikes may have delayed Iran’s nuclear program by months. While demand for safe-haven assets spiked earlier in the session, it faded after Trump downplayed the prospects of a ceasefire, signaling continued geopolitical tension.

The precious metal gained nearly 4% last week when Israel launched its offensive, stoking fears of a broader Middle East war. But momentum has cooled. Analysts say gold’s reaction, while muted, is consistent with historical patterns where geopolitical shocks rarely produce sustained price spikes.

Carsten Menke of Julius Baer noted that short-term traders may initially overreact, but gold usually finds a steadier footing as risk sentiment stabilizes.

Despite the pause, gold is on pace for its sixth straight monthly gain, the longest such streak in over 20 years. It currently trades about $120 below its all-time high set in April. As of mid-morning in London, spot gold edged down 0.2% to $3,379.74.

Other precious metals saw mixed movement:
-Silver and platinum ticked higher
-Palladium declined
-The Bloomberg Dollar Spot Index held flat

​Bottom line: Gold remains a barometer for geopolitical and economic risk. While headline-driven spikes are possible, sustained moves are likely to depend on broader shifts in monetary policy, inflation expectations, and long-term risk appetite. For now, traders are balancing fear with fatigue.