Gold prices posted modest gains during Asian trading on Monday following a highly volatile week, as investors continued to monitor the possibility of further escalation in the U.S.-Israel conflict with Iran.
Spot gold rose 0.4% to $4,509.51 an ounce by 23:36 ET (03:36 GMT), while gold futures also advanced 0.4% to $4,537.40 an ounce. Last week, spot gold briefly dropped to around $4,000 per ounce before rebounding to near $4,500 by Friday.
Among other precious metals, spot silver declined 0.9% to $69.0915 per ounce, while platinum rose 1.8% to $1,898.73 per ounce.
Gold rebound appears technical, macro headwinds remain — OCBC
Analysts at OCBC said the recovery in gold prices from last week’s lows appears to be mainly technical, particularly after the metal had fallen by as much as 20% since the start of the Iran conflict.
They noted that bearish momentum has begun to ease somewhat, with gold’s relative strength index climbing back out of oversold territory.
However, they cautioned that it remains uncertain whether the rebound can be sustained, pointing to key resistance levels for spot gold at $4,624, $4,670 and $4,850 per ounce.
“A more durable recovery would likely require prices to reclaim and hold above these levels. Failing which, gold may continue to trade on a softer footing,” OCBC analysts said.
They also warned that elevated energy prices could keep inflation pressures high, potentially pushing Treasury yields upward and “creating a more challenging environment for gold in the interim.”
Iran war escalation in focus as Houthis attack Israel
Markets remained wary of the risk of further escalation in the Iran conflict after the Iran-backed Houthi group based in Yemen launched attacks against Israel over the weekend. The Houthis could open another front in the war given their ability to strike targets in the Red Sea.
Iran said it was ready for the possibility of a U.S. ground invasion, particularly after reports late last week indicated that Washington was mobilizing thousands of troops toward the Middle East.
President Donald Trump told reporters that negotiations with Iran were progressing well and suggested that an agreement might be close. However, he did not offer a clear timeline and warned that further strikes on Tehran remained a possibility.
Last week, Trump extended the deadline for potential attacks on Iran’s energy infrastructure until early April.
Iran has largely rejected the idea of direct negotiations with the United States since the conflict began in late February.
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