Gold prices are set to open sharply higher Sunday. Escalating tensions between the U.S. and Iran are driving this expectation. Traders anticipate increased demand for gold as a safe-haven asset. Global equity markets also face rising uncertainty.
The precious metal closed Friday at a one-month high. It broke out of a weeks-long consolidation range last week. This range spanned between $4794.69 and $5143.89. The next visible resistance for gold stands at its record high of $5602.23.
Some analysts caution that a strong opening surge could attract quick selling. This might trap new investors. A stronger U.S. dollar or a rebound in stock markets could also limit gold’s upward movement. Potential new negotiations between Iran and the U.S. might also affect prices.
One analyst noted concerns about how long the conflict will last. He suggested gold prices could reach $6000 to $7000 if Russia and China offer support to Iran.