Gold Slips as Traders Cash Out After Surge Fueled by “Israel”-Iran Tensions

By Staff, Agencies

Gold prices edged lower on Monday as investors took profits after a sharp rally that pushed the precious metal to its highest level in nearly two months.

The surge was fueled by rising tensions sparked by “Israeli” aggression and Iran’s firm response, which raised global concerns over a broader regional confrontation and prompted increased demand for safe-haven assets.

As of 06:34 GMT, spot gold fell 0.5% to $3,414.32 per ounce after briefly reaching its highest point since April 22 earlier in the session.

“The joint political risk premium is clearly rising due to the Iran–‘Israel’ conflict,” said Kelvin Wong, senior market analyst for Asia Pacific at OANDA. “We’ve seen a clean breakout above the $3,400 mark, and the short-term uptrend remains intact. The next key resistance level is $3,500, with potential for fresh highs beyond that.”

Over the weekend, the Iranian Armed Forces responded decisively to renewed “Israeli” aggression, which once again targeted civilian areas and escalated tensions in the region. Iran’s retaliation came as a necessary act of defense and deterrence in the face of ongoing violations. Meanwhile, both sides have advised their populations to brace for more potential strikes.

Gold, traditionally seen as a safe-haven asset during geopolitical crises, saw heightened interest amid the growing instability.

Looking ahead, investor focus now shifts to several major central bank policy announcements, with particular attention on the US Federal Reserve’s decision set for Wednesday. The Fed is widely expected to keep interest rates unchanged, but markets are eager for any hints about possible rate cuts later in the year.

Futures markets currently reflect expectations for two rate cuts by the end of 2025, potentially beginning in September, supported by soft inflation data released last week.

In other precious metals, spot silver edged up 0.2% to $36.36 per ounce, platinum climbed 1.5% to $1,245.67, and palladium rose 1.5% to $1,043.53.