Gold Likely to Hold Above $5,000/Oz Amid Middle East Tensions, Says Phillip Nova Analyst

Gold is expected to consolidate above the key $5,000 per ounce level in the near term, according to a note from Priyanka Sachdeva, analyst at Phillip Nova.

Sachdeva highlighted that the ongoing geopolitical escalation in the Middle East is likely to keep prices supported above this pivotal mark. She noted that developments in the region could quickly influence price movements for the yellow metal.

“A genuine de-escalation could taper off haven demand, while renewed friction would likely fuel further defensive positioning in gold,” Sachdeva wrote.

In addition to geopolitical factors, other macroeconomic drivers will continue to play an important role. These include real yields, trends in the U.S. dollar, and Federal Reserve rate expectations, all of which could affect precious metals prices in the coming sessions.

On the market, spot gold was down 1.2% at $5,166.80 a troy ounce at the time of the report, but remained well above the psychologically significant $5,000 level.

Analysts noted that while prices have pulled back slightly, the combination of risk-off sentiment and macro drivers should support consolidation around current levels unless there is a material change in economic data or geopolitical dynamics.