TLDR
- Coordinated U.S.-Israel military operations targeted Iran during the weekend, resulting in the death of Supreme Leader Ayatollah Ali Khamenei
- Precious metals soared more than 2% with gold reaching above $5,400 per ounce, marking the strongest level since January’s close
- Crude oil prices experienced their largest single-day jump in four years amid concerns over Strait of Hormuz supply routes
- Precious metals across the board rallied as market participants shifted capital toward traditional safe-haven investments
- Market strategists identify $5,595 and $6,000 as critical resistance levels for gold’s continued advance
Precious metals experienced a significant rally on Monday following weekend military operations conducted jointly by the United States and Israel against Iranian targets. The strikes resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.
The spot price for gold advanced 2.4% to reach $5,406 per ounce during early Asian market hours. This upward movement follows last week’s gains exceeding 3%.
U.S. Gold Futures posted a 2.8% increase to $5,391.46. Year-to-date, the yellow metal has accumulated approximately 25% in gains.
Tehran launched retaliatory missile attacks targeting Israeli territory along with American military installations across Qatar, the UAE, Kuwait, and Bahrain. President Donald Trump declared that military operations against Iran would persist until achieving stated goals.
Ali Larijani, Iran’s national security chief, announced via social media that Tehran has no intention of entering negotiations with Washington. This declaration suggests the confrontation may extend over a prolonged period.
Financial markets demonstrated immediate reactions. Capital flowed away from equities toward traditional safe-haven instruments including gold and energy commodities.
Oil prices posted their steepest climb in four years at Monday’s market open. Market participants expressed concerns about potential disruptions to the Strait of Hormuz — a critical passage for international petroleum transport.
Saudi Aramco temporarily suspended operations at one refinery following a drone attack in the vicinity, according to sources with knowledge of the situation. This development applied additional upward pressure on crude prices.
Gold Hits $5,400 as Middle East Conflict Escalates
Silver advanced 2.4% to $96.04 per ounce. Platinum recorded a 1.7% gain while palladium jumped 3.1%.
Copper futures showed modest increases, with London Metal Exchange contracts adding 0.3%.
The U.S. dollar strengthened as well, with the Bloomberg Dollar Spot Index advancing as much as 0.7%. While typically a robust dollar creates headwinds for commodity valuations, both gold and oil climbed regardless.
“Precious metals, oil and commodities are rising despite the dollar’s rebound,” said Hong Hao, chief investment officer of Lotus Asset Management. “This demonstrates that these hard assets are the true hard currency during this extraordinary period.”
Analysts Target $5,595 and $6,000 for Gold
Michael Brown, Senior Research Strategist at Pepperstone, identified $5,400 as the initial threshold to monitor, with the late-January peak of $5,595 per ounce representing the next objective.
Brown indicated that the weekend’s military developments reinforce the bullish outlook for gold. He anticipates a possible advance toward $6,000 before 2026 concludes.
Strategists at ING observed that any interruption to energy supply chains would elevate gold prices through higher crude costs and increased inflation expectations.
Gold’s performance this year has been bolstered by central bank purchases, portfolio shifts away from government bonds, and market expectations for Federal Reserve rate reductions. February represented the metal’s seventh consecutive monthly advance — the longest winning streak since 1973.
Analysts at Franklin Templeton recommended “selective gold exposure over broad equity shorts” as market sentiment shifts to risk-off mode.
Spot gold was trading at $5,406.27 as of Monday afternoon in Singapore.
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