Gold prices eased on Wednesday after an extended rally briefly pushed bullion above the $5,100 per ounce level. The pullback came as investors reassessed recent gains, even as renewed tensions between the United States and Iran continued to underpin safe-haven demand.
By 11:09 ET (16:09 GMT), spot gold was down 0.5% at $4,922.64 per ounce, while April gold futures edged 0.2% higher to $4,945.55 per ounce. Earlier in the session, spot prices climbed to $5,092.31, while futures touched $5,113.50.
Gold rebounded sharply on Tuesday after suffering its steepest two-day decline since 1983, recording its strongest intraday gain in more than 17 years. Analysts at Fairlead Strategies said last week’s selloff occurred within a broader long-term uptrend, noting that medium-term momentum remains positive. They highlighted key support near the 50-day moving average around $4,500, with stronger support closer to $4,240, while resistance is now seen near the record highs around $5,500.
Iran tensions support safe-haven demand
Renewed geopolitical concerns have remained a major driver for gold. Reports overnight said U.S. forces shot down an Iranian drone over the Arabian Sea, while Iranian gunboats were also seen approaching a U.S.-linked tanker in the Strait of Hormuz.
These incidents partly offset earlier optimism after Tehran and Washington signaled plans to hold nuclear talks on Friday. News of the talks had briefly reduced safe-haven buying, but the latest developments revived investor caution.
Recent pressure on gold prices was also linked to expectations that Donald Trump’s nominee for Federal Reserve chair, Kevin Warsh, could take a less dovish policy stance than markets had anticipated. This outlook fueled a stronger U.S. dollar, weighing on precious metals and encouraging profit-taking after gold surged to a record high near $5,600 per ounce last week.
Despite the recent pullback, gold remains up more than 15% so far in 2026. Analysts at ING said safe-haven demand, ongoing central bank purchases, and the outlook for real interest rates continue to support gold over the medium term. They noted that sustained official-sector buying, which began after Russia’s invasion of Ukraine in 2022, remains a key pillar of the metal’s multi-year uptrend.
Silver and platinum extend recovery
Other precious metals also moved higher on Wednesday, extending gains from the previous session. Spot silver climbed 2.5% to $87.2815 per ounce, while spot platinum rose 1% to $2,232.65 per ounce.
Analysts at OCBC said the rebound suggests that forced selling and margin-related liquidations may have eased for now. However, they cautioned that the recovery remains fragile, with markets still sensitive to U.S. dollar movements, yield repricing, and uncertainty surrounding Federal Reserve policy under new leadership.
OCBC described the recent drop in gold prices as a normalization rather than a reversal of the broader trend. The bank expects gold to continue benefiting from central bank demand and ongoing geopolitical and fiscal risks, while silver is also seen gaining support from its dual role as both a precious and industrial metal. OCBC reiterated its end-2026 price targets of $5,600 per ounce for gold and $133 per ounce for silver.
