Gold prices posted modest gains during Asian trading on Monday after a volatile week, as markets continued to monitor the risk 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 climbed 0.4% to $4,537.40 an ounce. Last week, spot gold had briefly dropped to around $4,000 per ounce before recovering to near $4,500 by Friday.
Among other precious metals, spot silver slipped 0.9% to $69.0915 an ounce, while platinum advanced 1.8% to $1,898.73 an ounce.
Gold rebound appears technical, macro headwinds remain — OCBC
Analysts at OCBC said the recent rebound in gold from last week’s lows appeared largely technical in nature, particularly after prices had fallen by as much as 20% since the Iran conflict began.
They noted that bearish momentum showed some signs of easing, with gold’s relative strength index recovering from oversold levels.
However, they cautioned that it remains uncertain whether the recovery can be sustained, identifying 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.
The analysts added that elevated energy prices could keep inflation pressures high, which may push Treasury yields higher and potentially “creating a more challenging environment for gold in the interim.”
Iran war escalation in focus as Houthis attack Israel
Markets remained cautious about the potential for 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 carry out strikes in the Red Sea.
Iran said it was ready for a possible U.S. ground invasion, particularly after reports late last week indicated that Washington was mobilizing thousands of troops to the Middle East.
President Donald Trump told reporters that negotiations with Iran were progressing well and suggested a deal could be near. However, he did not give a clear timetable and also warned that further strikes on Tehran remained possible.
Last week, Trump extended the deadline for potential attacks on Iran’s energy infrastructure until early April.
Iran has largely rejected the possibility of direct negotiations with the United States since the war began in late February.