Gold Prices Surge to Near $5,400/Oz, Silver Prices Increase 2% to $96 Amid Escalation in US-Israel-Iran Tensions

Gold and Silver Prices Surge Amid Escalating Tensions in the Middle East

Market Overview On March 2, gold and silver prices rose nearly 2.5% amidst escalating tensions in the Middle East and unsettled financial markets. Investors sought safe-haven assets, driving up the prices of spot gold and spot silver.

Key Developments The spot gold rate climbed to $5,400 per ounce during the intraday session, while the spot silver price surged nearly 2%, touching an intraday high of $96.93 per ounce during Asian trading hours.

Market Drivers The escalation of tensions in the Middle East, following strikes by the United States and Israel on Iran, prompted Tehran to retaliate with multiple waves of missile attacks across several nations. This has led to an increase in demand for safe-haven assets, including gold and silver. The prolonged rally in gold has been driven by broader geopolitical strains, strong central bank purchases, and a shift by investors away from sovereign bonds and currencies.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Investment Perspective Experts believe that the momentum in gold and silver prices could continue if the conflict intensifies further. Jateen Trivedi, VP Research Analyst at LKP Securities, notes that capital tends to shift into precious metals as global equities and risk assets come under pressure, acting as a hedge against uncertainty. Ponmudi R, CEO of Enrich Money, observes that volatility in bullions remains contained, but participation has picked up meaningfully near key breakout levels. Fawad Razaqzada, Market Analyst at City Index and Forex.com, predicts that gold prices could rise to around $5,500 again, and possibly a new record high above January's peak of around $5,600.