Gold Price Rebounds Above $3,400 After Trump’s Tehran Warning

Gold Surges Past $3,400 Amid Renewed Geopolitical Tensions

Gold prices (XAU/USD) staged a strong recovery in early Asian trading on Tuesday, surging above $3,400 per ounce following a sharp 1.4% decline on Monday—its worst single-day loss in a month. The rebound was triggered by renewed safe-haven buying, prompted by heightened geopolitical tensions.

Trump’s Tehran Warning Sparks Fresh Gold Demand

The surge comes in the wake of a threat from former US President Donald Trump toward Tehran, intensifying fears of an escalation in the Middle East conflict. These developments pushed investors back into precious metals amid growing uncertainty.

Gold has historically performed well during periods of geopolitical risk, and Tuesday’s rebound reflects a return to safety trades after Monday’s profit-taking phase.

Key Technical and Sentiment Levels

The psychological $3,400 mark has now been recaptured, and if tensions continue, further upside momentum may follow. Traders are watching closely to see if this marks a sustained bullish breakout or just a reactive spike to global headlines.

Market Focus Shifts to Fed and Risk Events

Looking ahead, the FOMC decision on Wednesday remains another potential driver for the precious metal. If the Federal Reserve signals dovish intent or confirms a slower path to rate cuts, Gold could find additional support.

Conclusion: Gold's Safe-Haven Appeal Returns

With rising geopolitical uncertainty and looming central bank policy updates, Gold remains a core focus for risk-averse investors. The climb back above $3,400 may signal that the precious metal’s appeal as a hedge is far from over.