Gold prices rallied sharply on Monday after the United States and Israel launched major strikes on Iran, escalating geopolitical tensions and triggering renewed safe-haven demand across global markets.
Spot gold rose 1.88% to $5,376.44 per ounce in early trading after climbing as much as 2% earlier in the session and reaching its highest level in more than four weeks. U.S. gold futures gained 2.7% to $5,389.20 per ounce.
The surge reinforces gold’s role as a hedge during periods of geopolitical instability and economic uncertainty.
The latest military escalation has heightened fears of broader regional conflict, particularly given the strategic importance of Middle East energy routes.
Oil markets have also reacted with Brent crude trading above $80 per barrel amid concerns about potential supply disruptions.
Currency markets reflected risk aversion as the U.S. Dollar Index rose 0.27%, typically a headwind for bullion, though safe-haven demand outweighed the stronger dollar’s pressure.
The current rally builds on a 64% surge in gold prices in 2025, driven by sustained central bank purchases, strong exchange-traded fund inflows and expectations of monetary policy easing in the United States. Rising geopolitical uncertainty has further amplified gold’s upward momentum.
Other precious metals advanced alongside gold. Silver rose 1.3% to $95 per ounce, platinum gained 0.8% to $2,383.50 and palladium climbed 2.3% to $1,826.59.
Investors are expected to closely monitor further military developments, inflation data and global economic signals as markets continue to reprice geopolitical risk.
Analysts note that sustained escalation could support additional upside for gold as volatility persists across energy, currency and equity markets.
