Gold price rebound to $4,450 on Middle East de-escalation

Gold price rebound has lifted prices toward $4,450/oz after confirmed Middle East de-escalation reduced the immediate risk premium. The rally followed months of diplomatic steps, including ceasefire talks (Oct 2024), a phased de-escalation framework (Nov 2024), troop withdrawals and demilitarization (Dec 2024), and normalization/humanitarian corridors (Jan–Feb 2025). Traders also cited market positioning: trading volumes rose about 35% during the announcement period. Technically, gold found support near $4,300 earlier and is now watching resistance around $4,480 (early January high), with new support around $4,380. A push above $4,500 would signal stronger bullish momentum; failure below $4,350 would weaken the rebound. Fundamentals remain supportive beyond geopolitics. The article points to continued central bank gold purchases at historically high levels, with examples including People’s Bank of China (225 tonnes), Central Bank of Turkey (128), National Bank of Poland (95) and Reserve Bank of India (74). It also highlights higher production costs (marginal cost approaching ~$1,800/oz) and real interest rates staying low as inflation expectations moderate. Overall, this gold price rebound appears driven by both geopolitical recalibration and durable demand factors.