Commodity Exchange Opens Today, Gold Prices Projected to Surge Immediately
Gold prices are expected to begin the new trading week with a sharp rally when Asian markets open, following escalating geopolitical risks over the weekend that have driven investors to reinforce defensive positions.
Several analysts told Gulf News that the initial market reaction is likely to involve a significant price gap up. However, the sustainability of the gains will depend on whether investors continue to treat gold as a primary safe haven or whether buying activity moderates once initial position adjustments are completed.
Mohanad Yakout, senior market analyst at Scope Markets, stated that opening market sentiment is likely to be strong, with one critical price level set to determine the subsequent direction.
“Gold is very likely to open with a significant upward jump when Asian markets begin trading, given the intensity of geopolitical escalation. The key level to watch is $5,600 per ounce, which represents the previous all-time high and serves as an important psychological threshold,” Yakout said.
According to him, price movement around that level is more important than the magnitude of the initial increase.
“If gold only manages to break through that level before declining, it indicates short-term hedging activity. However, if the price breaks $5,600 per ounce and holds above it with sustained buying interest, it signals a more structural shift towards a ‘haven-first’ strategy,” he added.
Levels Being Monitored by Market Participants
Other analysts are viewing gold’s initial movement from the perspective of resistance zones that could determine the direction of the trading session.
Michael Brown, senior research analyst at Pepperstone, stated that markets are likely to adopt a defensive stance at opening, with two levels likely to attract attention.
“It is very clear that gold will open higher as market participants reduce risk and seek safe assets in response to the geopolitical events of this weekend,” Brown said.
He added, “The level of $5,400 per ounce, followed by the late January all-time high of $5,595 per ounce, represent important levels to watch on the upside.”
Meanwhile, Vijay Valecha, head of investment at Century Financial, believes confirmation of a shift to longer-term strategy lies within a slightly lower price range.
“Gold is likely to begin Asian trading with a strong rally, reflecting heightened geopolitical tensions and a shift towards safer assets. The weekend close around $5,430 per ounce, up approximately $136 per ounce, suggests the market is entering this week with greater caution,” he said.
According to him, if gold can maintain levels above $5,450–$5,500 per ounce, it would signal a shift from short-term hedging towards a longer-term safe-haven asset strategy.