Gold prices edged up in Asian trading on Monday, recovering modestly after a turbulent week marked by sharp volatility tied to escalating geopolitical tensions between the United States and Iran. Spot gold climbed 0.4% to $4,509.51 per ounce, while gold futures similarly gained 0.4%, reaching $4,537.40 per ounce. The precious metal had plunged to a weekly low of $4,000 per ounce before rebounding close to $4,500 by Friday's close.
Other precious metals showed mixed performance. Spot silver slipped 0.9% to $69.09 per ounce, while platinum outperformed with a 1.8% gain, settling at $1,898.73 per ounce.
Analysts at OCBC cautioned that gold's recovery from recent lows looks largely technical rather than fundamentally driven. They pointed out that prices had dropped nearly 20% since the Iran conflict began, and while bearish momentum shows early signs of cooling — with the relative strength index climbing out of oversold territory — the road to a sustained recovery remains uncertain. Key resistance levels to watch are $4,624, $4,670, and $4,850 per ounce. According to OCBC, a lasting rebound would require gold to break above and hold those thresholds. Persistent energy price inflation poses an additional headwind, as it could push Treasury yields higher and weigh on gold's appeal.
Geopolitical risk continued to dominate sentiment after Yemen's Houthi rebels, backed by Iran, launched fresh attacks on Israel over the weekend. The group's potential to disrupt Red Sea shipping lanes adds another layer of uncertainty to global markets. Iran has signaled readiness for a U.S. ground offensive, while Washington has been reportedly mobilizing thousands of troops to the region. President Trump indicated that diplomatic negotiations with Iran are progressing and that a deal may be near, though no concrete timeline was provided. He also extended the deadline for potential strikes on Iranian energy infrastructure to early April, keeping markets on edge.


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