June 10, 2025 — Global gold prices rebounded on Tuesday as investors scrambled for safety amid intensifying Israel-Iran hostilities and a dramatic evacuation call by former U.S. President Donald Trump urging Iranians to leave Tehran.
Gold Holds Strong Amid Chaos
As of 0239 GMT, spot gold rose by 0.4% to $3,396.67 an ounce, reversing Monday’s losses of over 1%. U.S. gold futures were flat at $3,416.30, signaling consolidation ahead of key macro events.
“Market sentiment continues to swing between escalation and de-escalation regarding events in the Middle East, and these back-and-forth sentiment shifts are what is driving the gold price’s moves either side of the $3,400 level,”
— Tim Waterer, Chief Market Analyst, KCM Trade
Escalating Middle East Crisis: Key Trigger
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This is now the fifth consecutive day of military conflict between Israel and Iran.
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On Monday, Israel struck Iran’s state broadcaster, and the UN nuclear watchdog confirmed severe damage to Iran’s top uranium enrichment site.
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Meanwhile, Trump returned early from the G7 Summit in Canada, calling on Iranians to evacuate Tehran, citing Iran’s refusal to return to a nuclear weapons control agreement.
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U.S. National Security Council members were reportedly on standby in the situation room, adding to concerns of a broader regional war.
These developments have revived investor demand for safe-haven assets, particularly gold, which thrives during periods of geopolitical upheaval and financial uncertainty.
Gold Eyes $3,500 as Volatility Persists
Despite Monday’s dip, analysts see further upside potential:
“There is enough prevailing uncertainty surrounding both tariff wars and actual wars to buttress the gold price and keep it within sight of a potential return to $3,500,”
— Tim Waterer, KCM Trade
The Middle East conflict, combined with uncertain U.S.-China trade dynamics, has created a volatile backdrop that typically benefits precious metals.
Fed Meeting Looms: Another Key Catalyst
Investors are also eyeing the Federal Reserve’s monetary policy decision due Wednesday. The Fed is expected to hold interest rates steady, but all eyes will be on Chair Jerome Powell’s forward guidance.
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Traders currently expect two rate cuts before the end of 2025.
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Any dovish signals from the Fed could further fuel gold’s momentum, as lower interest rates typically weaken the dollar and boost demand for non-yielding assets like gold.
Pakistan Gold Market: Local Prices Dip
Despite the global rebound, gold prices in Pakistan fell by Rs700 per tola on Tuesday. This divergence could be due to:
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Currency fluctuations (PKR vs. USD)
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Lower local demand amid economic constraints
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Retail market pricing lagging international trends
Still, geopolitical risk remains the overriding factor influencing medium-term expectations in both global and regional bullion markets.
Other Precious Metals Update
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Silver rose 0.3% to $36.41 per ounce
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Platinum gained 0.6% to $1,251.20
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Palladium inched up 0.2% to $1,031.68
All major metals appear to be riding the wave of risk-off sentiment and monetary policy uncertainty.
Outlook: Gold to Remain Volatile but Supported
With military escalations, Fed decisions, and Trump’s reentry into high-stakes geopolitical rhetoric, the conditions for gold’s continued strength are firmly in place. However, short-term pullbacks should not be ruled out as markets react to news cycles.
The key levels to watch:
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Immediate support: $3,350
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Psychological resistance: $3,500
Should the Israel-Iran conflict intensify further, or if Powell signals any weakness in the U.S. economy, gold could decisively break higher.
