Gold prices rose during Asian trading, trading above the $5,120 level. Escalating geopolitical tensions in the Middle East fueled demand for the safe-haven metal.
A stronger U.S. dollar limited gold’s gains. The dollar strengthened as traders reduced bets on interest rate cuts by the U.S. Federal Reserve.
Gold gained traction after Iran’s new supreme leader, Mojtaba Khamenei, warned U.S. military bases in the region must close or face attacks. U.S. President Donald Trump stated stopping Iran’s “evil empire” was more important than oil price stability. This pushed crude oil prices higher. Concerns about a potential closure of the Strait of Hormuz also raised fears of rising inflation, prompting investors to expect fewer Fed rate cuts in 2026.
Gold currently trades near $5,086. It sits above a key support level of $5,040, with a bullish trend indicated by the 200-period moving average. Resistance is seen around $5,200. Silver trades at approximately $82.93, facing resistance at $84.40 and support at $79.66. Both metals show weakening momentum, with their Relative Strength Index (RSI) around 45-50.