Gold prices surged back above the $5,000-an-ounce threshold in Asian trading on Wednesday, as fresh signs of strain between the United States and Iran reignited investor demand for traditional safe-haven assets.
The metal built on a strong rebound from Tuesday’s session, with bargain hunting continuing after last week’s sharp sell-off that erased more than $1,000 per ounce from prices.
Spot gold climbed 2.3% to $5,060.28 an ounce by 01:17 ET (06:17 GMT), while April gold futures rose 2.9% to $5,078.96 an ounce.
Iran-related risks resurface ahead of nuclear negotiations
Geopolitical concerns were a key catalyst for the renewed strength in gold, particularly after reports overnight that U.S. forces shot down an Iranian drone over the Arabian Sea. In a separate incident, Iranian patrol boats were reportedly seen approaching a tanker linked to the United States in the Strait of Hormuz.
These developments undercut earlier comments from officials in Tehran and Washington indicating that talks scheduled for Friday would proceed. News of the planned negotiations had previously eased market anxiety and dampened demand for gold as a refuge.
Recent losses in gold were largely driven by expectations that U.S. President Donald Trump’s nominee to lead the Federal Reserve, Kevin Warsh, would pursue a less accommodative policy stance than markets had hoped. That outlook boosted the U.S. dollar and weighed on precious metals, while profit-taking also set in after gold surged to a record high near $5,600 an ounce last week.
Even after the pullback, gold remains up nearly 15% so far in 2026.
Analysts at ANZ said in a recent note that the underlying drivers of gold’s strength—safe-haven demand, physical buying and central-bank purchases—continue to provide solid support.
Silver and platinum advance; OCBC expects gold strength to endure
Other precious metals also moved higher on Wednesday, extending a recovery that began in the previous session. Spot silver gained 2.8% to $87.4955 an ounce, while spot platinum jumped 3% to $2,286.72 an ounce.
“The rebound suggests that forced selling and margin-driven liquidation pressures may have eased, at least temporarily,” OCBC analysts wrote in a note. They cautioned, however, that the recovery remains fragile, noting that “sensitivity to the USD, yield repricing and uncertainty around Fed policy under new leadership remains elevated.”
Even so, OCBC described the recent slump in gold prices as a phase of normalization rather than a “trend reversal.” The brokerage said ongoing central-bank buying, alongside persistent geopolitical and fiscal risks, should continue to underpin gold’s role as a safe haven.
Silver is also expected to benefit from its dual role as both a precious and industrial metal. OCBC reiterated its end-2026 price targets of $5,600 an ounce for gold and $133 an ounce for silver.
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