Gold holds firm above $5,000 as global tensions lift safe-haven demand

Gold (XAUUSD) is holding above the $5,000 mark as geopolitical tensions and policy uncertainty drive safe-haven demand. Escalating conflict risks in the Middle East and renewed Russian attacks on Ukraine have intensified global uncertainty. At the same time, the nomination of Kevin Warsh as Fed Chair and delays in key U.S. data have clouded the policy outlook. With the Dollar pausing and markets lacking clear signals, gold continues to benefit from the uncertain environment.

Gold maintains strength above $5,000 as global risk events support demand

Gold is trading above the $5,000 level as rising global tensions revive safe-haven demand. The U.S. military shot down an Iranian drone and reported armed Iranian boats near a U.S.-flagged vessel in the Strait of Hormuz, renewing fears of conflict in the Middle East. Meanwhile, Russia launched a major missile and drone assault on Ukraine, casting a shadow over upcoming negotiations. These events have deepened global uncertainty and lifted gold’s appeal as a geopolitical hedge.

At the same time, markets remain focused on the future direction of U.S. monetary policy. Kevin Warsh, recently nominated by President Trump to lead the Fed, is known for his past hawkish stance. However, analysts expect he may now favor rate cuts, especially under political pressure. The uncertain backdrop continues to weigh on market sentiment. While potential easing could support gold, Warsh’s stance on reducing the Fed’s balance sheet presents a counterforce. For now, the lack of policy clarity is offering indirect support to gold.

Meanwhile, the U.S. Dollar has paused its brief recovery, adding further momentum to gold. A partial government shutdown has disrupted key economic data, including the delayed January jobs report. This has left the market without clear guidance on labor conditions or inflation. While Trump’s short-term funding deal removed immediate fiscal risk, the immigration debate remains unresolved. Markets now turn to the upcoming ADP jobs data and ISM Services PMI for signals on the Fed’s March policy stance. Until then, the lack of visibility continues to favor gold.

Gold rebounds sharply after testing multi-month trendline support

The gold chart below shows a sharp recovery after a deep correction tested the multi-month ascending trendline. This line, drawn from August 2025, has consistently provided structural support. Previous corrections during the rally formed rounded basing patterns above this trendline, offering launch points for further gains. The latest drop briefly undercut this zone but triggered a strong upside reaction.

After testing the trendline, gold rebounded sharply, reclaiming the $5,000 level and extending toward $5,050. This rebound follows the steepest decline since the uptrend began but highlights the strength of the broader bullish structure. Each time gold approached the trendline, buyers stepped in aggressively. The speed and scale of the latest rebound highlight the strength of demand at structural support.

In the short term, gold remains technically supported above its rising trendline. The recent surge confirms that the broader uptrend is still intact, despite volatility. As long as price holds above this zone and continues forming higher lows, the technical outlook remains constructive. A close above recent highs could reopen upside potential in the near term.

Gold outlook: Uptrend intact as policy uncertainty and global tensions deepen

Gold remains well-supported above $5,000 as geopolitical tensions, policy ambiguity, and a stalled Dollar continue to shape a favorable backdrop. The sharp rebound from structural support confirms strong underlying interest despite recent volatility. With the Fed’s direction unclear and key data delayed, markets lack firm guidance. This environment favors gold, especially as the Dollar softens and conflict risks rise. As long as price holds above key zones, the broader uptrend remains intact.