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. 

Bitcoin settled below $105,000 on Thursday despite mounting risk aversion amid geopolitical tensions and a bullish stance by the Federal Reserve.

Bitcoin is up 0.4% as of 14:08 GMT to $104.8 thousand on Coinmarketcap.

Bitcoin is holding its ground despite market volatility, with NASDAQ closing down on Wednesday, and US stock futures wavering on Thursday.

Trump Agrees on Iran Strike Plans

Reports showed that Trump has approved plans for a strike against Iran but hasn’t issued the final order yet. 

The Iran-Israel military conflict continues viciously, with the US eyed for a role at busting an Iranian nuclear site deep under a mountain with a 30,000 pound bomb. 

Trump said he may or may not do it.. With the uncertainty sending gold and other alternative assets higher. 

Bullish Fed Stance

The Fed maintained interest rates unchanged while raising its inflation outlook for this year and the next.

The bullish tone of the Fed raised concerns that interest rates might remain high for an extended duration, pressuring high-risk assets such as cryptocurrencies. 

Trump Lauds New Crypto Bill

Trump welcomed the Senate’s approval of the Genius Act bill to regulate Stablecoins. 

Trump called on the House to move quickly to approve the bill and send it to him to sign. 

The news boosted some crypto-related corporate stocks, but the impact on the crypto market itself remained muted. 

Oil prices rose on Thursday as Iran and Israel continued to bomb each other through the night, with the world waiting to see US President Trump’s decision on joining the conflict. 

Brent futures rose 0.5% to $77.06 a barrel as of 09:13 GMT, while US West Texas July futures rose 0.7% to $75.68 a barrel.

Brent surged to a five-month high recently at $78.50 when Israel first started its airstrike campaign. 

Now the conflict has entered its seventh day on Thursday, with Israel hitting Iran’s only nuclear energy facility, while an Iranian missile hit an Israeli hospital. 

Goldman Sachs Expects a Higher Surge

Goldman Sachs said there’s a $10 premium in oil prices due to disruption to Iranian supplies and risks of an even wider disruption to regional shipping, which could send Brent above $90 a barrel.

US President Donald Trump said he still hasn’t decided on whether to join the conflict against Iran, which is keeping investors on edge. 

Analysts have warned that striking Iran’s energy infrastructure would represent an existential threat to the regime and could send the conflict spiraling out of control. 

The possibility of the closure of the Hormuz strait in particular is of a huge concern to many investors and could send oil prices to over $120 a barrel according to some analysts.

Iran is currently OPEC’s third biggest oil producer at 3.3 million bpd.

US Inventory Drawdown 

The Energy Information Administration reported a sharp drawdown of 11.5 million barrels in US crude stocks last week to a total of 420.9 million barrels, while analysts only expected a drop of 1.6 million barrels. 

Gasoline stocks fell by 0.2 million barrels to 230 million barrels, while distillate stocks rose 0.5 million barrels to 109.4 million barrels. 

The Bank of England revealed the tally of today's policy vote at the June 19 meeting, with 6 members voting in favor of holding rates steady, and 3 members voting in favor of a 0.25% rate cut.

The markets expected a bigger 7-2 margin in favor of holding rates steady.