TLDR
- Precious metal prices advanced following Israeli military operations in Tehran, though a robust U.S. dollar limited the rally
- Spot gold fluctuated between $5,121 and $5,156 per ounce Thursday, marking a near-20% gain for 2026
- The metal reached an all-time peak of $5,594.82 in January 2026, surging past $5,400 as U.S.-Israeli military operations against Iran commenced
- The Federal Reserve’s upcoming policy decision scheduled for March 18 is anticipated to maintain current interest rates
- Former Fed Governor Kevin Warsh received President Trump’s nomination to lead the central bank on Wednesday
Precious metal markets experienced conflicting pressures Thursday as geopolitical turmoil in the Middle East drove haven-seeking behavior while concurrent U.S. dollar strength created headwinds for international purchasers.
The yellow metal fluctuated within a range of $5,121 to $5,156 per ounce throughout trading. Earlier in the session, prices briefly exceeded $5,200 before retreating.
The precious metal has posted impressive gains approaching 20% during 2026. January saw the commodity establish a new record peak at $5,594.82.
When military operations involving the U.S. and Israel against Iran intensified earlier this week, the metal surged beyond $5,400 on Monday. This advance reflected investor flight to safety amid escalating regional tensions.
Israeli forces conducted another substantial strike campaign against Tehran on Thursday. Military officials indicated the operations focused on infrastructure associated with Iranian governmental authorities.
The offensive followed Iranian missile launches that forced millions of Israeli citizens into protective shelters.
Safe-Haven Demand vs. Dollar Strength
The U.S. dollar appreciated approximately 0.2% Thursday, momentarily retreating from three-month peaks. Dollar appreciation typically constrains gold advances by increasing the metal’s cost in alternative currencies.
Hamad Hussain, climate and commodities economist at Capital Economics, noted the conflict generates opposing pressures for the precious metal. Haven demand supports pricing, while elevated energy costs could intensify inflation and diminish rate reduction prospects — factors that would pressure gold.
Gold generates no yield, making it more attractive during periods of reduced interest rates.
Fed Policy in Focus
President Trump formally announced former Federal Reserve Governor Kevin Warsh as his selection for Fed chair on Wednesday.
The central bank published its latest Beige Book Wednesday, revealing modest U.S. economic expansion, continued price increases, and steady employment conditions.
Market participants currently anticipate the Fed will maintain existing rates at its March 18 policy meeting, based on CME Group’s FedWatch tool projections.
Traders are monitoring weekly unemployment claims data releasing Thursday and February’s employment report arriving Friday. These releases could provide additional insight into future monetary policy direction.
Worries about climbing energy costs are amplifying inflation anxieties throughout international markets.
Silver advanced 0.8% to $84.10 per ounce Thursday. Platinum climbed nearly 1% to $2,168.05, while palladium declined 0.9% to $1,659.35.
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