Gold and Silver Rise Amid U.S.-Iran Tensions

Gold prices moved higher on Monday trading, while silver posted a stronger rally as investors returned to precious metals despite rising oil prices, higher U.S. bond yields, and ongoing uncertainty surrounding U.S.-Iran negotiations.

At the time of writing, spot gold was trading around $4,565 per ounce, up 0.57%, while spot silver climbed 2.16% to $77.48. Analysts believe geopolitical tensions in the Middle East and concerns over the Strait of Hormuz remain the key drivers across global markets, as any disruption in the region could impact nearly one-fifth of the world’s oil supply.

Oil markets experienced sharp volatility during Monday’s session. Brent crude initially surged above $111 per barrel before pulling back below $109 after reports that Donald Trump delayed a planned strike on Iran following requests from Gulf allies. The situation has created a mixed outlook for gold: on one hand, geopolitical risks continue to support safe-haven demand, while on the other hand, higher oil prices are fueling inflation concerns and expectations for elevated interest rates, limiting upside momentum for bullion.

A market analyst, stated that gold remains under pressure from stronger oil prices, rising Treasury yields, and the U.S. dollar. According to him, although gold managed to rebound from key support levels, the recovery still lacks enough strength to fully reverse the short-term bearish pressure.

Meanwhile, U.S. stock markets closed mixed as investors continued to focus on oil and interest-rate volatility. The S&P 500 slipped 0.1%, the Nasdaq fell 0.5%, while the Dow Jones gained 0.3%. At the same time, the U.S. 10-year Treasury yield climbed to 4.63%, reducing the appeal of non-yielding assets such as gold.

From a technical perspective, analysts believe that if gold breaks above the $4,660–$4,680 resistance zone, the next upside targets could be the 50-day moving average near $4,716 followed by the $4,800 level. On the downside, a break below $4,530 may open the door for deeper losses toward the $4,350 area.

In the silver market, bulls are attempting to push prices back above the $78–$79 resistance range. A successful breakout could target the $85 and even $89 levels, while losing support at $76.83 may trigger a deeper correction toward $75.