Gold nears one-month high as geopolitics and softer yields lift demand

Gold prices climbed close to a one-month peak on Friday, February 27, 2026, and were on track for a seventh consecutive monthly gain, supported by heightened geopolitical tension after the U.S. and Iran extended nuclear talks. Softer U.S. Treasury yields also helped by making non-yielding bullion more attractive.

Spot gold rose 0.8% to $5,230.56 an ounce as of 1:38pm ET (18:38 GMT), after earlier hitting its highest level since January 30. The metal has gained 7.6% so far in February. U.S. gold futures for April delivery settled up 1% at $5,247.90.

“There’s a lot of concern about geopolitics right now — everything is set up for a high chance of military action this weekend,” said Phillip Streible, chief market strategist at Blue Line Futures, describing a risk-off shift into safe-haven assets.

Oman, which has been mediating the U.S.–Iran nuclear talks, said progress was made on Thursday, but the hours-long discussions ended without a breakthrough that would help avert a potential U.S. strike, amid a major military build-up.

Separately, the U.S. Embassy in Jerusalem authorised the departure of non-emergency staff and family members from Israel, citing security reasons.

The benchmark 10-year U.S. Treasury yield fell to a three-month low, reducing the opportunity cost of holding gold. Streible said the next target for gold could be $5,450, with key support at $5,120.

U.S. data also showed producer prices (PPI) in January rose more than expected, signalling inflation could pick up in the months ahead. Markets were pricing in about a 42% chance of a 0.25 percentage-point U.S. rate cut in June, according to CME’s FedWatch tool.

In China, the world’s largest gold consumer, net gold imports via Hong Kong surged 68.7% in January from December, according to Hong Kong’s Census and Statistics Department.

China’s central bank also moved to curb yuan strength, scrapping the risk reserve requirement for foreign-exchange forwards to encourage more dollar buying.

Elsewhere, spot silver jumped 4.8% to $92.60 an ounce and was heading for a 9.7% monthly gain. Platinum rose 3.4% to $2,350.34, while palladium fell 0.5% to $1,775.31 — though both were still set for gains on the month.