Gold, silver, and platinum edge higher as geopolitical risks drive safe-haven demand
Gold surges 2% as Middle East tensions boost safe-haven demand.
The start of the week has brought renewed strength to the precious metals market, fuelled by rising geopolitical risks.
While the three metals, gold, silver, and platinum are responding to broader risk-off sentiment, their price action shows differing levels of conviction and technical progression.
Gold is leading the rebound across the board, advancing nearly 2% today and breaking above both the 20-day and 50-day EMAs on the 4-hour chart. This move, confirmed by a shift in RSI into bullish territory and increasing trading volume, marks a strong technical recovery following a two-week decline. The metal is now trading at $3,300 and approaching a key near-term trendline resistance at $3,310.
Gold, silver and platinum price dynamics (March - May 2025). Source: MT4
These technical milestones, coupled with today's surge in demand for safe-haven assets following the Houthi missile strike on Israel’s Ben Gurion airport and growing expectations of Israeli retaliation, place gold in a strong position. The 20- and 50-EMA crossovers are now set to act as support around the $3,260 zone, establishing a firmer base should geopolitical tensions persist.
Silver and platinum price and RSI momentum lags behind gold
Silver’s price action paints a more cautious picture. While it records a 1.3% gain as of today’s European session, the metal is confined to a tight consolidation band between $31.80 and $32.75. This comes after four consecutive bearish sessions that saw silver lose key support levels last week. RSI readings on both daily and 4-hour timeframes are flat, signalling indecision. Silver’s test of the 20 and 50 EMAs today may determine if it can stabilise above those levels, or if it will remain range-bound in the absence of a stronger catalyst.
Platinum, on the other hand, is seeing moderate upward momentum after bouncing off support near $957.5. Currently trading at $966 following a brief push to $970, the metal remains locked in a narrow range capped at $977.9. Both the daily and 4-hour RSI remain bullish, although the limited extension in price suggests momentum may slow unless a breakout occurs.
Beyond technical factors, fundamental drivers are also reinforcing the bid for precious metals. Though US economic data from manufacturing and services point to a gradual easing, the labour market is not deteriorating sharply. This economic backdrop could allow the Federal Reserve to hold interest rates steady for an extended period, preserving the opportunity cost advantage for non-yielding assets like gold and silver.
Gold, silver, and platinum rebounded as tariff talks between the U.S. and China surfaced. The metals also found technical support following recent oversold conditions.
