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Drone Incident Boosts Safe-Haven Demand

Gold Nears $5,078 While Oil Pulls Back After a Brief Rally

Global markets experienced a state of tension yesterday, on February 3, 2026, after the United States announced that it had shot down an Iranian drone that approached a U.S. aircraft carrier in the Arabian Sea. Washington described the incident as a defensive action, according to Reuters. These developments came at a sensitive time for the region, bringing geopolitical concerns back to the forefront of investors’ attention.

This escalation prompted increased demand for safe-haven assets, with gold extending its gains and rising toward $5,078 per ounce, supported by stronger hedging demand amid political and economic uncertainty across global markets.

At the same time, oil prices benefited from the tensions, climbing temporarily to $63.89 per barrel before beginning to take a breather and retreating to around $62.70, as market caution returned and concerns over immediate supply disruptions eased.

The movements in gold and oil reflect a broader wait-and-see stance across financial markets, as investors prioritize risk management while monitoring geopolitical and economic developments that could shape market direction in the coming period.

Gold Analysis & Outlook

Gold continues to trade above $5,070 per ounce following its recent rise due to geopolitical tensions. From a technical perspective, the metal shows signs of short-term recovery after the previous decline, with strong support at $5,050 – $5,020 and resistance at $5,100 – $5,120.

The MACD indicator signals moderate bullish momentum, while the RSI reflects slight overbought conditions, which may limit the pace of further gains in the coming sessions.

Gold is expected to remain within the $5,050 – $5,120 range as long as no new geopolitical or economic developments occur, maintaining its role as a safe-haven asset against political or financial risks.

- Source: Reuters.

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