Gold Hits Near $4,403 as Oil Tops $100 Amid US-Iran Tensions

The escalating tensions between the US and Iran have sent gold prices near $4,403 as oil tops $100 per barrel. The surge in oil prices, combined with a weaker dollar, has driven investors to seek safe-haven assets like gold and silver.

Spot gold traded at $4,417.87, up 1.46%, while spot silver was at $67.37, up 2.46%. Brent crude was trading at $100.72 a barrel, with WTI crude at $95.70.

The US dollar weakened against major currencies, making gold and silver cheaper for buyers holding other currencies and adding support to prices. However, Treasury yields stayed elevated, with the 10-year yield near 4.81%, its highest level since October 25, 2023, which is a headwind that typically pressures non-yielding assets like gold and silver.

Analysts describe the setup for metals as mixed, with higher crude prices and yields weighing on gold and silver in the short term, but a weaker dollar, safe-haven demand, and uncertainty over Gulf oil supply offsetting that pressure. Gold is trading between support at $4,347 and resistance at $4,422.