Gold Surges Past $5,200 Amid US-Iran Tensions

Gold reclaimed the $5,200 level on Friday, driven by heightened geopolitical risks and a surge in safe-haven demand. The move comes after reports that US officials advised nonessential embassy staff in Israel to leave the country, fueling fears of a possible escalation in the ongoing US-Iran standoff.


At the time of writing, gold is trading around $5,225 per ounce, marking a modest daily gain and pointing toward a potential fourth consecutive week of positive performance. Investors are flocking to the precious metal as uncertainties mount, seeking security in an asset historically known for its stability during turbulent times.


Fed Policy Keeps Markets Cautious


Recent US inflation data has tempered expectations for an early interest rate cut, reinforcing the view that the Federal Reserve will maintain its current policy stance in the near term. While this has lent some support to the US dollar, it has also limited gold’s upside potential. Traders remain cautious, balancing safe-haven demand against economic signals suggesting steady borrowing costs.


Geopolitical and Trade Risks Support Gold


The third round of indirect US-Iran nuclear talks concluded without major breakthroughs, leaving the threat of military action unresolved. Simultaneously, renewed uncertainties in global trade policy, including new tariffs, have reinforced investor appetite for gold. This combination of geopolitical and economic pressures has kept gold firmly in focus as a defensive asset.


Outlook: Narrow Range With Upside Potential


In the short term, gold is likely to trade within a defined range, supported by ongoing central bank buying, steady inflows from ETFs, and persistent global uncertainty. Despite some cooling in momentum, the metal remains on track for a seventh straight monthly gain, highlighting its appeal as a hedge against instability and inflation.


Gold continues to serve as a trusted refuge for investors during periods of geopolitical tension and economic unpredictability, making it a key barometer of market sentiment in the current climate.