Gold prices rose early this week, hitting an intraday high near $5,393. The metal gained momentum from increasing geopolitical tensions in West Asia and expectations for U.S. Federal Reserve interest rate cuts. Gold traded above the $5,300 level.
Geopolitical tensions in West Asia escalated over the weekend. Reports indicated U.S. and Israeli strikes on Iran, leading to the killing of Supreme Leader Ayatollah Ali Khamenei. Iran’s Islamic Revolutionary Guard Corps (IRGC) also announced it would stop ships in the Strait of Hormuz. This situation pushed investors towards safe-haven assets like gold.
Speculation about additional U.S. Federal Reserve interest rate cuts also supported gold prices. The U.S. dollar weakened from its late January peak, adding further support. Traders now await major U.S. economic data releases this week, including the ISM Manufacturing PMI and the ADP private-sector jobs report.
Silver also showed strength, trading around $94.92. It moved above its $92.21 resistance zone, confirming an uptrend that began in mid-February. The 50-period EMA near $90 and the 100-period EMA near $85 both support a bullish outlook for silver.