Escalating Geopolitical Tensions Propel Gold Prices Upward as Demand for Safe-Haven Investments Grows

Gold prices edged higher at the start of the week, driven by increased investor demand for safe-haven assets amid escalating geopolitical tensions in the Middle East. The rise comes as concerns mount over the potential expansion of the conflict, particularly after the United States launched airstrikes targeting key nuclear facilities in Iran — marking the most significant Western military action against the Islamic Republic since the 1979 revolution.

Spot gold rose by 0.1% to $3,371.30 per ounce as of 00:20 GMT, while U.S. gold futures remained steady at $3,387.20 per ounce. These figures reflect heightened market anxiety and a shift towards safer investment instruments. The market is closely monitoring Iran’s response to the strikes, especially as missile exchanges between Iran and Israel continued over the weekend.

Other precious metals saw mixed performance. Silver gained 0.1% to reach $36.03 per ounce. Platinum declined by 0.3% to $1,260.78 per ounce, while palladium dropped 0.1% to $1,043 per ounce.

These developments underscore the global market’s sustained reliance on gold as a safe-haven asset during times of political and economic uncertainty. With regional tensions persisting and ambiguity surrounding future U.S. monetary policy decisions, gold prices are likely to remain supported by strong demand in the near term — unless sudden breakthroughs occur on the geopolitical or economic front.