Gold prices are heading into the long weekend with a weekly gain of around 3%, holding above the $4,600 level, as markets remain highly volatile due to ongoing geopolitical tensions in the Middle East. Despite early bullish momentum, gold failed to break the key $4,800 resistance, facing selling pressure midweek. The continued conflict involving the United States, Israel, and Iran has led markets to price in a prolonged war scenario, especially as oil prices surge above $100 per barrel, increasing concerns over inflation and global supply chain disruptions while supporting the U.S. dollar.
Analysts suggest this environment may weigh on gold in the short term, as rising inflation could push central banks toward tighter monetary policies. However, some experts believe that the economic shock from elevated energy prices may eventually weaken growth and force central banks to cut rates, which would support gold in the medium term. For now, the $4,600 level remains a key support; a break below it could trigger a move toward $4,450, while holding above may open the path for another attempt at $4,800. Meanwhile, the psychological level of $5,000 is seen as the next major upside target. In the near term, markets are closely watching upcoming U.S. economic data, including the nonfarm payrolls report, PCE index, and CPI, which are expected to set the tone for gold’s next move.
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