Gold price hits three-month high amid fears over Iran war and Trump economy

AI desk brief

Gold hit a more than three-month high on Tuesday, trading up about 15% in August and reaching $4,651/oz in Asian hours before easing, as Middle East conflict, renewed Iran-related geopolitical risk and broader US political uncertainty extended the safe-haven bid. The move puts bullion on track for its strongest monthly performance in nearly 30 years, with the next upside resistance cited around $4,900/$5,000.

The rally comes despite some countervailing forces earlier in the year, when gold briefly fell to $3,942 in late June even as the Middle East war continued. The article argues the latest leg higher reflects a shift back toward hedge demand: inflation anxiety, questions around the Fed’s independence under new chair Kevin Warsh, worries over Trump’s tax-and-spending plans, and renewed tariff escalation with Canada.

For traders, the near-term tape is being driven by a familiar mix of geopolitical premium and macro hedging demand, with dips expected to be well supported. Watch US inflation data, Warsh’s speech and any further deterioration in Iran/US relations or sanctions rhetoric; a stronger oil-driven inflation impulse could temper upside, but the article’s cited flow backdrop suggests buyers are leaning in on pullbacks.