Gold jumps back above $5,000 an ounce as Iran tensions fuel safe-haven demand

Gold prices climbed back above key technical levels during Asian trading on Wednesday, as renewed signs of tension between the United States and Iran fueled safe-haven demand for the precious metal.

Bullion extended its rebound from Tuesday after sharply recovering from recent losses, with dip-buying activity also remaining strong following last week’s more than $1,000 price sell-off.

Spot gold gained 2% to $5,048.37 per ounce by 21:00 ET (02:00 GMT), while April gold futures advanced 2.8% to $5,017.19 per ounce.

Other precious metals also moved higher on Wednesday, building on the rebound seen in the previous session. Spot silver gained 0.5% to $85.5245 per ounce, while spot platinum climbed 1.7% to $2,256.04 per ounce.

Iran concerns return ahead of upcoming nuclear talks

Renewed concerns over escalating tensions between the United States and Iran were a key catalyst for safe-haven demand, particularly after overnight reports that U.S. forces shot down an Iranian drone over the Arabian Sea.

In a separate development, Iranian gunboats were reported to have approached a U.S.-linked oil tanker in the Strait of Hormuz.

These incidents partially offset earlier statements from both Tehran and Washington indicating that talks would be held this Friday. News of the planned negotiations had previously eased market anxiety and weighed on safe-haven demand for gold.

Gold’s recent pullback was largely driven by expectations that U.S. President Donald Trump’s nominee for Federal Reserve chair, Kevin Warsh, may adopt a less dovish stance than markets had anticipated. This fueled a sharp rally in the U.S. dollar, pressuring precious metals, while gold also faced profit-taking after surging to a record high near $5,600 per ounce last week.

Despite the recent decline, gold remains up nearly 15% so far in 2026.

ANZ analysts noted that the core fundamentals underpinning gold’s strength—safe-haven demand, robust physical buying, and ongoing central bank purchases—remain firmly intact.

Sources: Ambar Warrick