Gold prices climbed back above key technical levels during Asian trading on Wednesday, as renewed signs of tension between the United States and Iran boosted demand for safe-haven assets. Heightened geopolitical risk encouraged investors to return to bullion after recent volatility.
The precious metal extended its recovery from Tuesday, when prices rebounded sharply following steep losses last week. Dip-buying activity also remained strong after gold suffered a price drop of more than $1,000 in the previous session.
Spot gold rose 2.3% to $5,060.28 per ounce by 01:17 ET (06:17 GMT), while April gold futures gained 2.9% to $5,078.96 per ounce.
Iran tensions resurface ahead of nuclear talks
Concerns surrounding U.S.–Iran relations were a key driver behind the renewed safe-haven demand. Reports overnight indicated that U.S. forces had shot down an Iranian drone over the Arabian Sea. In a separate incident, Iranian gunboats were seen approaching a U.S.-linked oil tanker in the Strait of Hormuz.
These developments weakened earlier market optimism after officials in Tehran and Washington said nuclear talks were scheduled for Friday. News of the planned discussions had previously eased geopolitical fears and reduced demand for gold.
Recent pressure on bullion prices was largely driven by expectations that Donald Trump’s nominee for Federal Reserve Chair, Kevin Warsh, may adopt a less dovish policy stance than markets had anticipated. This outlook fueled a sharp rebound in the U.S. dollar, weighing on metals and triggering profit-taking after gold surged to a record high near $5,600 per ounce last week.
Despite the pullback, gold remains up nearly 15% so far in 2026. Analysts at ANZ noted that the core drivers behind gold’s strength—safe-haven demand, physical buying, and continued central bank purchases—remain firmly in place.
Silver and platinum rebound as outlook stays supportive
Other precious metals also advanced, extending Tuesday’s recovery. Spot silver jumped 2.8% to $87.4955 per ounce, while spot platinum climbed 3% to $2,286.72 per ounce.
OCBC analysts said the rebound suggests that forced selling and margin-related liquidations may have eased for now. However, they cautioned that markets remain highly sensitive to movements in the U.S. dollar, changes in yield expectations, and uncertainty surrounding Federal Reserve policy under new leadership.
OCBC described the recent decline in gold prices as a normalization rather than a shift in the broader trend. The brokerage expects gold to continue benefiting from central bank demand, while ongoing geopolitical and fiscal risks should keep safe-haven interest supported. Silver is also seen gaining support from its dual role as both a precious and industrial metal.
OCBC maintained its end-2026 price targets of $5,600 per ounce for gold and $133 per ounce for silver.
