Gold prices surge past $5,400 as Middle East conflict intensifies
2026-03-02 - 08:13
Gold prices rallied sharply on Monday as geopolitical tensions in the Middle East drove investors toward traditional safe-haven assets following the weekend's US-Israeli military campaign against Iran. Spot gold climbed 2.44% to reach $5,406 per ounce by 10.15 am (0715GMT), reflecting market anxiety over the expanding conflict that has already claimed the lives of Iran's Supreme Leader and dozens of senior commanders. Precious metals rally amid uncertainty The surge in bullion prices represents one of the most significant single-day gains in recent months as market participants seek protection against escalating regional instability. Silver followed gold's upward trajectory, rising 2.05% to $95.8 per ounce. Investors traditionally turn to precious metals as a hedge during military conflicts when currency fluctuations and economic disruptions become increasingly likely. Strait of Hormuz concerns mount Market analysts point to the effective closure of the Strait of Hormuz as a critical factor that could amplify volatility in the coming days. The strategic waterway, through which approximately one-fifth of the world's oil passes, has become a flashpoint in the expanding conflict between Iran and the US-Israeli coalition. Any prolonged disruption to shipping lanes through the strait would have profound implications for global energy prices and broader economic stability. Regional conflict drives The military campaign, which entered its third day with US forces sinking nine Iranian naval vessels, has eliminated Tehran's top political and military leadership, creating an unprecedented power vacuum. Iran has retaliated with drone and missile strikes targeting Gulf countries, while the UAE and Bahrain report successfully intercepting hundreds of projectiles. With President Donald Trump projecting a four-week campaign timeline and no diplomatic resolution in sight, investors are bracing for sustained market turbulence as the conflict shows no signs of abating.