Rising tensions between the United States and Iran have boosted demand for safe-haven assets, pushing gold prices higher during Asian trading on Wednesday.
After last week’s sharp decline of over $1,000, gold rebounded as investors continued buying at lower levels. Reports that the US shot down an Iranian drone in the Arabian Sea and that Iranian gunboats approached a US-linked oil tanker in the Strait of Hormuz intensified geopolitical concerns.
Meanwhile, expectations around US Federal Reserve policy and a stronger US dollar had recently pressured gold prices. Despite recent volatility, gold has risen nearly 15% so far in 2026.
Analysts say safe-haven demand, central bank buying, and geopolitical risks continue to support gold prices, while silver is also expected to benefit due to its dual role as a precious and industrial metal.
