US-Iran Tensions Push Gold Near $4,400 as Oil Surges Past $100

The US-Iran tensions have driven gold and silver prices higher, despite elevated Treasury yields and surging oil prices. Spot gold is trading near $4,417.87, up 1.46%, while spot silver has risen to $67.37, a gain of 2.46%. The escalation in tensions follows Iran's attack on US warships in the Gulf of Oman, with the US responding by destroying five Iranian oil tankers.

The recent jump in oil prices and elevated Treasury yields typically weigh on gold and silver, but a weaker dollar and safe-haven demand are offsetting that pressure. The setup for metals is described as mixed, with traders waiting for this week's inflation data to determine the direction of gold and silver.

Analysts say that a hotter-than-expected reading would likely keep yields elevated and cap the metals' rally, while a softer print could ease rate expectations and open room for gold to break higher. Gold is trading between support at $4,347 and resistance at $4,422, with a break above resistance potentially opening the door to targets at $4,465 and $4,512.