Gold Price Jumps Near 2% Above $4,080 as Middle East Tensions Lift Safe-Haven Demand

Gold prices surged nearly 2% on Tuesday, rebounding after repeatedly holding support around the key $4,000-per-ounce level since mid-July. The rally came despite a stronger U.S. dollar and rising oil prices, as escalating tensions between the United States and Iran boosted demand for safe-haven assets.

Spot gold climbed 1.8% to $4,081.07 per ounce, while U.S. gold futures gained 1.7% to settle at $4,085.37.

According to David Morrison, senior market analyst at Trade Nation, gold's ability to defend the $4,000 support level encouraged buyers to return while reducing selling pressure from short positions. However, he noted that the next major hurdle sits near $4,200, a key resistance level. Morrison added that the daily MACD indicator suggests upside momentum remains limited, meaning gold could consolidate before attempting another breakout. A decline back toward $4,000, he warned, could weaken bullish sentiment.

Geopolitical risks remained the primary catalyst for the latest gains. The United States carried out its tenth consecutive day of military strikes against Iran, while Tehran responded with attacks on a tanker in the Strait of Hormuz and U.S. military bases in the region.

Speaking at the White House, U.S. Secretary of War Pete Hegseth said the U.S. would continue responding forcefully if Iran targeted commercial shipping. President Donald Trump also reiterated that Iran would not be allowed to develop nuclear weapons, warning that any suspected nuclear sites would face powerful military action if necessary.

Adding to market concerns, Iran-backed Houthi forces declared a maritime embargo against Saudi Arabia, increasing fears of further disruptions to global oil supplies through the Red Sea.

Brent crude futures rose 2.3% to $91.24 per barrel, reviving inflation concerns that could influence Federal Reserve policy. CME FedWatch data shows markets now assign roughly a 76% probability that the Fed will leave interest rates unchanged this month, while the chances of a 25-basis-point hike in September have climbed to nearly 55%.

Higher interest rates typically pressure non-yielding assets like gold while supporting the U.S. dollar. UBS Global Wealth Management's Dominic Schnider said elevated real-rate expectations and uneven investment flows may continue to weigh on gold, suggesting investors should maintain a long-term outlook.

Elsewhere in precious metals, spot silver jumped 4.3% to $58.84 per ounce, while platinum advanced 1.6% to $1,628.90.