Gold Prices Rise on Geopolitical Tensions, Weak Dollar

Gold prices rose in Asian trading, nearing $5,200 after turning up from $5,090 support. Safe-haven demand fueled this positive movement. Geopolitical risks, including US-Iran nuclear talks and a military build-up in the Middle East, kept investors nervous. A negative trend in the US dollar index also supported gold’s recovery.

Silver prices followed gold, also seeing demand due to increased geopolitical tension. Investors often use silver as a second safe-haven when gold rallies. Federal Reserve policy remains a headwind, with officials signaling no rush to cut rates due to sticky inflation. Higher interest rates typically weigh on gold and silver.

Trade policy risks and global growth concerns provide another layer of support for precious metals. New tariffs and threats of higher duties increase fears of supply chain disruption. Spot gold shows strong positive price action, breaking above $5,090. The price rose to $5,250 before correcting back towards $5,090.

A rebound from $5,090 during Asian trading indicates continued positive action for gold. A break above $5,250 would signal further upside towards $5,600. Silver prices also show strong momentum, rebounding from $72 support and challenging $90. A break above $90 would indicate further upside towards $100. The US dollar index shows weakness, trading below its 50-day Simple Moving Average, which supports precious metals.