Gold Swings After US-Iran Strikes, Nears $4,000

Gold prices swung sharply in a volatile session on Thursday, recovering from earlier losses after fresh US strikes against Iran escalated geopolitical tensions. The metal had fallen toward $4,000 an ounce earlier in the day before bouncing back as safe-haven demand resurfaced. This intraday reversal highlights gold's sensitivity to geopolitical shocks, amplified by the metal's traditional role as a portfolio hedge during times of conflict.

President Donald Trump ordered a second night of bombing against Iran, vowing to continue attacks if Tehran refuses to agree to an interim peace deal. The escalation follows stalled negotiations and raises the stakes in a conflict that has already roiled global markets and stoked inflation concerns. For gold traders, the renewed geopolitical risk provides a classic catalyst for safe-haven buying, offsetting headwinds from a stronger US dollar and rising bond yields. The inverse correlation between gold and the DXY dollar index remains a key driver; a stronger dollar typically pressures gold, but geopolitical risk can override that relationship. Additionally, central banks have been net buyers of gold since 2022, diversifying reserves away from the dollar, which provides a structural floor under prices. Real US 10-year yields, which move inversely to gold, have also been a headwind, but the current crisis has shifted focus to safe-haven flows. Live gold prices and charts on NowPrice show how the market is reacting to each new development in real time.

Looking ahead, traders will monitor any diplomatic progress or further military actions, as well as US economic data that could influence Federal Reserve policy. The $4,000 level remains a key psychological support, while resistance may emerge near recent highs. The situation in the Middle East will likely continue to drive short-term price action, with gold's traditional role as a geopolitical hedge keeping buyers alert. Investors are also watching the COMEX-LBMA spread for any signs of delivery stress, and ETF flows into GLD and IAU have picked up as retail and institutional investors seek exposure. Jewelry demand, which accounts for about half of annual gold consumption, may soften at these elevated prices, but investment demand and central bank buying are expected to remain supportive. The interplay between these factors will determine whether gold can sustain its rally or faces a pullback.