Gold Rallies as Middle East Conflict Drives Safe-Haven Demand
Gold prices extended gains for a fifth straight session on Tuesday as investors rushed toward safe-haven assets amid escalating U.S. and Israeli air strikes on Iran, raising fears of a prolonged regional conflict. Spot gold climbed 0.7% to $5,362.90 per ounce, while U.S. gold futures for April delivery rose 1.2% to $5,376.50. The surge reflects heightened geopolitical uncertainty, with analysts noting that open-ended risks surrounding the conflict are fueling strong demand for bullion.
Tensions intensified after Iranian officials warned that the Strait of Hormuz had been closed and threatened action against vessels attempting to pass through the key shipping route, which carries roughly one-fifth of global oil supplies. The development has heightened concerns over energy disruptions, rising oil prices, and renewed inflation pressures. Despite a stronger U.S. dollar — which typically weighs on gold — investors have continued buying both assets as protective hedges during market turmoil.
Broader precious metals also advanced, supported by risk-averse sentiment. Spot silver rose 0.2% to $89.64 per ounce after hitting a four-week high, while platinum gained 0.3% to $2,297.05 and palladium added 1% to $1,784.81. Markets remain focused on geopolitical developments and inflation risks as traders assess the potential economic fallout from escalating tensions in the Gulf region.
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