Gold prices surged back above the $5,000-an-ounce mark in Asian trading on Wednesday, as renewed signs of strain between the United States and Iran revived demand for traditional safe havens.
The precious metal added to gains after staging a sharp rebound from losses in the previous session, with bargain-hunting also supporting prices following last week’s steep correction that erased more than $1,000 per ounce.
Spot gold climbed 2.3% to $5,060.28 an ounce by 01:17 ET (06:17 GMT), while April gold futures jumped 2.9% to $5,078.96 an ounce.
Iran concerns resurface ahead of nuclear discussions
Heightened geopolitical anxiety was a key driver behind the renewed interest in bullion, particularly after reports overnight that the U.S. military had shot down an Iranian drone over the Arabian Sea. In a separate development, Iranian gunboats were reportedly observed moving toward a tanker linked to the United States in the Strait of Hormuz.
These incidents cast doubt on earlier signals from Tehran and Washington suggesting that talks scheduled for Friday would go ahead. News of the planned discussions had previously eased market nerves and weighed on gold’s appeal as a haven.
Gold’s recent pullback was largely attributed to expectations that U.S. President Donald Trump’s nominee for Federal Reserve chair, Kevin Warsh, would adopt a less dovish stance than markets had anticipated. That outlook helped propel the U.S. dollar higher, pressuring metals broadly. Prices were also vulnerable to profit-taking after gold surged to a record high near $5,600 an ounce last week.
Even so, bullion remains up nearly 15% so far in 2026.
Analysts at ANZ said in a recent note that the core drivers supporting gold—safe-haven demand, physical purchases, and central bank buying—remain firmly in place.
Silver, platinum rebound; OCBC sees gold strength persisting
Other precious metals also advanced on Wednesday, extending a recovery that began in the prior session. Spot silver rose 2.8% to $87.4955 an ounce, while spot platinum gained 3% to $2,286.72 an ounce.
“The rebound suggests that forced selling and margin-related liquidation pressures may have faded, at least for now,” OCBC analysts wrote in a note. However, they warned that the recovery still looks fragile, noting that “sensitivity to the USD, yield repricing, and uncertainty around Fed policy under new leadership remains high.”
Even so, OCBC characterized the recent slide in gold prices as a period of normalization rather than a “trend reversal.” The brokerage added that ongoing central bank demand, along with persistent geopolitical and fiscal risks, should continue to support gold’s role as a haven.
Silver is also expected to benefit from its dual appeal 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.