The escalation of the US-Iran conflict drives gold prices up by 2%

LootboxPhobia · 2026-03-02T00:27:04+00:00

Due to large-scale strikes by the United States and Israel against Iran, gold prices rose over 2% during the Asian trading session. Spot gold and futures reached $5,387.55 and $5,394.91 per ounce, respectively, hitting nearly a one-month high. Geopolitical tensions have intensified, boosting safe-haven demand, and the attractiveness of gold as a safe asset has significantly increased. The market expects gold prices to approach $6,000/ounce by the end of the year.

LootboxPhobia

2026-03-02 00:27:04

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Investing.com - On Monday during Asian trading hours, gold prices surged over 2% after the United States and Israel launched a large-scale strike against Iran, resulting in the death of the country’s top leader, Ayatollah Ali Khamenei. Investors flocked to safe-haven assets.

As of 18:56 Eastern Time (23:56 Beijing Time), spot gold rose 2.1% to $5,387.55 per ounce, reaching its highest level since the end of January. U.S. gold futures climbed 2.8% to $5,394.91.

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The market is reacting to an unprecedented escalation in the Middle East. The death of Iran’s most powerful figure has sparked concerns over broader regional conflict and potential disruptions to oil shipments through the Strait of Hormuz, a critical global energy corridor.

On Sunday, Israeli forces launched a new round of strikes against Tehran, targeting command infrastructure and air defense systems with missiles and fighter jets. Tehran responded with further missile salvos aimed at Israeli territory and U.S. bases in the Gulf region.

This geopolitical shock triggered typical safe-haven market behavior: stocks fell, oil surged, and demand for gold as a store of value increased.

Michael Brown, senior research strategist at Pepperstone, said, “Measuring the magnitude of this rally is obviously quite difficult, but I want to point out that key levels to watch on the upside are $5,400/ounce, followed by the late January high of $5,595/ounce.”

He added, “The developments over the weekend have indeed strengthened the bullish fundamentals for gold. In an increasingly uncertain world, gold will continue to benefit from safe-haven capital inflows, supported by strong retail and reserve demand.”

Brown also believes that by the end of this year, gold prices could approach $6,000 per ounce.

Since the beginning of the year, gold has risen nearly 25%, driven by geopolitical risks, central bank purchases, and expectations of Federal Reserve rate cuts.

In other precious metals, silver prices increased 1.3% to $95.15 per ounce, while platinum rose 0.3% to $2,396.11 per ounce.

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