Gold Surges Above $4,400 as Geopolitical Tensions Escalate
Gold prices rose back above $4,400 on Tuesday, despite a stronger U.S. dollar and higher Treasury yields. Spot gold traded at $4,412.50 an ounce, up 0.56% from the previous session.
The move was attributed to safe-haven flows tied to the Strait of Hormuz standoff between Iran and the United States. The geopolitical risk remains a dominant variable in metals and energy markets.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that gold needs to hold above $4,360-$4,370 to extend its rally. Spot prices are currently just $25 above this band.
RBC Capital Markets' forecasts offer a wide range of scenarios for gold prices, from a high of $5,300 to a low below $3,700. The central scenario sees gold averaging $4,577 in 2026 and easing to $4,225 in 2027.