Gold Price Surges 2% as US-Israel Conflict with Iran Escalates
Gold prices jumped more than 2% in Asian trading on Monday as investors rushed into safe-haven assets following a major military escalation involving the United States and Israel against Iran.
Spot gold climbed 2.1% to $5,387.55 per ounce as of 06:56 WIB, marking its highest level since late January. Meanwhile, U.S. gold futures advanced 2.8% to $5,394.91 per ounce, reflecting strong bullish momentum in the precious metals market.
Middle East Tensions Drive Safe-Haven Demand
Financial markets reacted sharply to the unprecedented escalation in the Middle East. Reports of a large-scale strike targeting Iran, including the death of Supreme Leader Ayatollah Ali Khamenei, intensified fears of a broader regional conflict.
Investors are increasingly concerned about potential disruptions to global oil shipments through the Strait of Hormuz — a critical energy corridor. The rising geopolitical risk has triggered a classic risk-off move across global markets.
Israeli forces reportedly launched additional waves of strikes in Tehran on Sunday, targeting command centers and air defense infrastructure. Iran responded with missile attacks directed toward Israeli territory and U.S. military bases in the Gulf region.
Gold Strengthens as Equities Fall, Oil Prices Spike
The geopolitical shock sent global equities lower while crude oil prices surged, reinforcing gold’s appeal as a store of value during times of uncertainty.
Michael Brown, Senior Research Strategist at Pepperstone, highlighted key resistance levels to watch:
“Trying to gauge the extent of the move is clearly challenging, though I would flag $5,400/oz followed by the late-January record high of $5,595/oz as key upside levels.”
He added that recent developments strengthen the fundamental bullish case for gold, noting that safe-haven inflows, strong retail demand, and central bank buying continue to provide tailwinds.
Brown also sees potential for gold to test the $6,000 per ounce level by year-end if geopolitical and macroeconomic conditions remain supportive.
Gold Up Nearly 25% Year-to-Date
Gold has rallied nearly 25% so far this year, supported by:
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Rising geopolitical risks
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Ongoing central bank purchases
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Expectations of Federal Reserve rate cuts
Among other precious metals, silver rose 1.3% to $95.15 per ounce, while platinum gained 0.3% to $2,396.11 per ounce.