Gold Gains as Safe-haven Demand Rises on Iran Conflict
Gold prices climbed sharply as escalating US-Israeli air strikes on Iran heightened geopolitical uncertainty and drove investors toward the precious metal as a safe-haven asset.
Spot gold rose more than 1 percent on Wednesday, rebounding from a more than one-week low as tensions in the Middle East intensified, according to Reuters. Spot bullion reached about $5,168.69 per ounce, while US gold futures for April delivery climbed to roughly $5,178.40.
The rally followed earlier gains this week after the United States and Israel launched a series of strikes on Iranian targets, fueling fears of a broader and prolonged conflict in the region.
Spot gold had risen as much as 2 percent in previous sessions to four-week highs near $5,350 per ounce on mounting safe-haven buying. Gold Prices Fall Sharply in Pakistan
Investors typically turn to gold during periods of heightened geopolitical risk, and the surge in bullion prices reflects broader market unease over instability in key energy-producing regions.
The prices of silver also jumped up to 84.42 USD/t.oz on March 4, 2026, which were up 2.97% from the previous day. Over the past month, Silver’s price has increased by 19.17%, and is up 158.74% against the corresponding period last year. Trading on a contract for difference (CFD) has revealed this which is used to track the benchmark market for silver commodity.
The heightened safe-haven demand has come against a backdrop of violent exchanges in the Middle East that have disrupted regional energy flows and pushed other commodities like oil sharply higher.
Gold’s recent gains build on strong momentum this year, with prices hitting successive record highs amid global uncertainty. Analysts say the persistent upward trend underscores gold’s role as a hedge against market volatility and geopolitical shocks.
Despite the safe-haven appeal, gold has also seen periods of profit-taking in recent sessions, with prices dipping on factors such as a stronger dollar and shifting expectations for interest rates. Still, market observers believe underlying demand remains solid if geopolitical tensions continue.
The price action in gold comes as broader financial markets grapple with risk aversion, with other defensive assets like cash and the US dollar also drawing investor interest amid the conflict’s uncertainties.