Quick overview

---

The precious metal surged marginally in Asia near the $3,450 an ounce mark, about $50 short of an all-time high set in April, as investors sought refuge in safe-haven assets due to the intensifying conflict between Israel and Iran.

The two nations bombarded one another with missiles and drones, raising energy prices and endangering regional transportation and energy infrastructure.

The rally, which has been largely fueled by the threat posed by President Donald Trump’s aggressive tariff agenda to global economic growth, has gained additional momentum from the abrupt increase in geopolitical risk. Central banks’ desire to diversify away from the dollar has been a major factor in the more than 30% increase in gold prices in 2025.

However, the bullion asset can’t hold onto its early gains and bounced back to the downside to offload the overbought conditions on the RSI. This was particularly true when negative signals began to appear on the RSI, which gathered its positive strength and suggested that the bullish pressure might continue on a short-term basis.

Gold has done very well as a haven asset, as many investors are shifting their money from US bonds to the metal in the long term. The precious metal posted a huge increase last week, amid increased speculation that the Federal Reserve would lower interest rates later this year, bolstered by weak US inflation and jobs data. Since bullion doesn’t pay interest, lower rates typically favor it.