Gold price steadies above $5,250 after U.S.-Israeli attacks on Iran jolt markets

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Gold price steadies above

Highlights

Spot gold was little changed near $5,284 after earlier climbing as high as $5,419.
U.S. gold futures traded near $5,300, keeping bullion close to the upper end of its recent range.
Safe-haven demand stayed firm, but a stronger dollar and higher yields limited follow-through.

Breakout holds, but intraday heat starts to cool

Gold’s chart looks stronger than it did at the end of last week, even with prices easing back from the session high. Spot bullion was around $5,284 by late afternoon after touching $5,418.50 earlier in the day, a move that kept the market well above the $5,200 area that had recently become an important reference point.

From a near-term technical perspective, the first zone to watch is now the $5,250 to $5,200 band. If gold continues to hold above that area, the latest move can still be read as consolidation after a sharp push higher. If it slips back through that range, traders may start treating Monday’s spike as a short-lived reaction rather than the start of another immediate leg toward the January record of $5,595.

Gold price dynamics (January - February 2026). Source: TradingView.

Dollar strength and yields complicate the move

Gold’s resilience is notable because it came alongside a firmer U.S. dollar. The dollar index rose more than 1% on Monday, making bullion more expensive for non-U.S. buyers and creating a familiar headwind for further gains even as safe-haven demand remained active.

Treasury markets also stopped offering the kind of clean support gold usually enjoys during risk-off sessions. In broader cross-asset trading, the benchmark U.S. 10-year yield rose to 4.038% from 3.962% late on Friday as investors shifted from an initial flight to safety toward concerns that higher energy prices could revive inflation pressure.

Conflict premium stays in place as markets reassess risk

The main driver remains geopolitical stress. The U.S.-Israeli air war against Iran broadened on Monday, with the conflict spilling into Lebanon and oil and gas prices jumping as markets weighed the risk of prolonged disruption across the region. What comes next is likely to depend less on whether gold is still in an uptrend and more on how durable the current risk premium proves to be.

If the Middle East conflict remains open-ended, bullion can stay supported from a higher base. But if the dollar keeps strengthening and yields remain firm on inflation worries tied to oil, the next few sessions may look more like consolidation above $5,200 than a straight move back toward the January peak.

Meanwhile, an increased interest in gold is being observed against the global stagflation shock and instability, as the gold price has a negative correlation with traditional markets.

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