Gold Prices Edge Higher as Iran War Tensions Remain in Focus
Gold prices posted modest gains in Asian trading on Monday, following sharp volatility last week, as markets continued to monitor the potential escalation of the U.S.-Israel conflict involving Iran.
Spot gold rose 0.4% to $4,509 per ounce, while gold futures also gained 0.4% to $4,537 per ounce.
Last week, gold briefly dropped to around $4,000 per ounce before rebounding strongly toward the $4,500 level by the end of the week.
Mixed Performance Across Precious Metals
Other precious metals showed mixed movement.
Silver declined 0.9% to $69.09 per ounce, while platinum outperformed, rising 1.8% to $1,898 per ounce.
Gold Rebound Seen as Technical Recovery
Analysts at OCBC noted that gold’s recent rebound appears largely technical in nature, especially after prices had fallen nearly 20% since the start of the Iran conflict.
Momentum indicators suggest that bearish pressure is easing, with gold’s relative strength index (RSI) recovering from oversold levels.
However, analysts remain cautious about the sustainability of the rebound.
Key Resistance Levels to Watch
According to OCBC, gold faces important resistance at:
- $4,624 per ounce
- $4,670 per ounce
- $4,850 per ounce
A sustained move above these levels would be needed to confirm a stronger recovery. Otherwise, gold could continue trading under pressure in the near term.
Macro Headwinds Still Challenge Gold
Despite the recent bounce, broader macroeconomic factors continue to weigh on gold.
Elevated energy prices risk keeping inflation high, which could push U.S. Treasury yields higher—a scenario that typically creates a more challenging environment for gold.
Geopolitical Risks Drive Market Uncertainty
Geopolitical tensions remain a key driver for gold markets.
Over the weekend, Iran-backed Houthi forces launched attacks on Israel, raising concerns about a potential expansion of the conflict into new regions, including the Red Sea.
Iran has also indicated readiness for a possible U.S. ground invasion, following reports of increased American troop deployments in the Middle East.
Uncertain Outlook for Iran-U.S. Relations
U.S. President Donald Trump stated that negotiations with Iran are progressing and that a potential agreement could be near. However, no clear timeline has been provided, and warnings of further military action remain.
Additionally, a previously set deadline for potential strikes on Iran’s energy infrastructure has been extended into early April.
Iran, for its part, continues to reject the possibility of direct negotiations with the United States since the conflict began in late February.
