Gold prices rose back above key levels in Asian trade on Wednesday as signs of renewed tensions between the U.S. and Iran drummed up safe haven demand for bullion.
The yellow metal extended gains after rebounding sharply from recent losses on Tuesday, with dip-buying also remaining in play after an over $1,000 price wipeout last week.
Spot gold rose 2.3% to $5,060.28 an ounce by 01:17 ET (06:17 GMT), while gold futures for April rose 2.9% to $5,078.96/oz.
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Iran worries resurface ahead of nuclear talks Concerns over rising tensions between the U.S. and Iran were a major driver of haven demand, especially after overnight reports showed the U.S. shot down an Iranian drone in the Arabian sea.
Separately, Iranian gunboats were seen approaching a U.S.-linked tanker in the Strait of Hormuz.
The two events somewhat undermined comments from Tehran and Washington that they will hold talks this Friday. News of the talks had offered markets some relief and dented haven demand for gold.
Recent losses in gold were driven chiefly by bets that U.S. President Donald Trump’s nomination for head of the Federal Reserve, Kevin Warsh, will be less dovish than markets were hoping.
This sparked a sharp increase in the dollar, which in turn pressured metal markets. Gold was also open to profit-taking after surging to a record high of nearly $5,600/oz last week.
But despite recent losses, gold was still trading up nearly 15% so far in 2026.
ANZ analysts said in a recent note that the fundamentals behind gold price strength– haven demand, physical buying, and central bank purchases– still remained in place.
Silver, platinum rebound; OCBC sees gold strength persisting Other precious metals also advanced on Wednesday, extending a recovery from the prior session. Spot silver rose 2.8% to $87.4955/oz, while spot platinum rallied 3% to $2,286.72/oz.
"The rebound suggests that forced selling and margin-related liquidation pressures may have faded, at least for now," OCBC analysts wrote in a note.
But they cautioned that the recovery still appeared shaky, especially as "sensitivity to the USD, yield repricing, and uncertainty around Fed policy under new leadership remains high."
Still, OCBC viewed the recent gold price rout as a price normalization, rather than a "trend reversal."
The brokerage said that gold was likely to continue benefiting from central bank demand, while geopolitical and fiscal risks will continue to underpin haven demand.
Silver is also expected to benefit from its dual role as a precious and industrial metal.
OCBC reiterated its end-2026 targets for gold and silver at $5,600/oz and $133/oz, respectively.
