Gold trades above $5,400 in early trading hours to $5,406 per ounce and marking a four-week high. As of writing and after a slight retracement, Gold trades at $5,377, gaining 0.9% in the last 24 hours and 4.97% in the last 7 days. The move follows major US and Israeli strikes on Iran over the weekend, which jolted global markets and drove investors toward traditional safe havens.
Source: CoinCodex
The precious metal opened the week with a sharp upward gap of roughly $20, then quickly extended gains during Asian trading hours. Why the rush? Geopolitical instability often pushes investors to seek protection, and this time proved no different.
Although gold now sits about 3% below its all-time high of $5,591.56, the metal continues to trade near record territory. The 24-hour range shows a low of $5,277.89 and a high of $5,418.73, reflecting elevated volatility as traders respond to fast-moving developments.
Silver followed gold’s lead, rising 2.05% to $95.8 per ounce, which signals broad strength across precious metals.
Escalating Conflict Fuels Safe-Haven Demand
Tensions escalated after US and Israeli forces launched massive strikes on Iran, reportedly killing Iran’s Supreme Leader, Ayatollah Ali Khamenei. President Donald Trump confirmed the development and indicated that the military campaign aims to overturn Tehran’s government.
In response, Iran launched a wave of strikes targeting US military bases, Israel, and other locations across the Middle East. The scale of retaliation marked a significant escalation in the conflict.
At the same time, Iran halted oil exports through the Strait of Hormuz. That decision pushed oil prices higher and intensified inflation concerns worldwide. When energy costs rise and geopolitical risks expand, investors often turn to gold as a hedge. Could inflation fears now add another layer of support beneath prices?
Market participants appear to think so. The combination of military confrontation and oil supply disruption created a powerful catalyst that lifted gold sharply at the start of the week.
Technical Levels Come Into Focus
From a technical angle, gold faces significant resistance at the $5,400 level. Prices now test that barrier repeatedly. If buyers manage a break above it, traders may target a renewed challenge of the $5,600 new peak.
Source: XAUUSD (Gold) - Traders via X
On the downside, $5,300 marks the first layer of support. Below that, $5,250 and $5,200 form additional cushions. Notably, $5,250 aligns with a gap-fill level; a drop beneath it could weaken the short-term bullish structure.
On the four-hour chart, gold moves within an ascending channel while moving averages align in a bullish configuration. If prices retrace toward the support of that channel and stabilize, the uptrend remains intact. However, a break below channel support could trigger a deeper pullback. In such a volatile environment, we watch these levels closely.
So what comes next? The short-term trend could be bearish, but the long-term trend still remains bullish. Momentum favors buyers, as geopolitics escalate.
Can Gold Challenge $5,600 Again?
Gold’s ability to reclaim and hold above $5,400 will likely determine whether it can retest the $5,600 all-time high in the near term. Sustained geopolitical uncertainty could provide the fuel for another leg higher.
Forecast models reflect that possibility. CoinCodex projects a one-month target of $5,651.89, slightly above the previous peak. Still, price action will depend on how the conflict unfolds and whether inflation pressures persist. Now, does this rally signal the start of another breakout, or will liquidity be hunted downwards before new highs emerge?
