Gold prices rose sharply in Monday's trading session after the US and Israel launched large-scale airstrikes targeting Iran, killing Supreme Leader Ayatollah Ali Khamenei. This development escalated geopolitical tensions and increased the level of global economic incertitude.
Spot gold rose 1.88% to 5.396.77 USD per ounce in this afternoon's trading session after hitting a four-week high. Previously in the session, gold prices at one point increased by 2 percent.
US gold futures rose 2.7% to $5,389.20 per ounce.
Israel launched a new wave of airstrikes on Tehran on Sunday. Iran then responded with a series of new missiles.
Mr. Kyle Rodda, senior financial market analyst at Capital. com, said that unlike previous escalations of this conflict, both sides currently have strong motives to continue pushing tensions further. This increases the risk of forming an unpredictable chaotic environment and strong fluctuations lasting not just a few days. In that context, the momentum for gold prices is quite positive.
However, the USD index increased by 0.27%, making gold more expensive for buyers abroad, thereby somewhat curbing the upward momentum of the precious metal.
Gold bars, which are considered traditional safe haven assets, have continuously set new records this year amid rising global political and economic instability.
This latest price increase is continuing the 64% increase in 2025. The momentum comes from strong buying activities of central banks. Large capital flows into ETF exchange-traded funds and expectations that the US Federal Reserve (Fed) will ease monetary policy.
Independent analyst Ross Norman said that gold is perhaps the most sensitive measure reflecting the level of global uncertainty. If compared, the thermometer is rising. Investors should expect gold to be revalued at higher levels and set new records as the world enters a completely new era of geopolitical instability.
Meanwhile, data released on Friday showed that production prices in the US in January increased more sharply than forecast. This shows that inflationary pressure may increase in the coming months.
Investors will also closely monitor a series of data on the US labor market this week. Notable reports include the number of ADP jobs. Number of weekly jobless claims and non-farm employment reports.
On the market of other precious metals, spot silver rose 1.3% to $95 per ounce after recording a monthly increase in February.
Spot platinum rose 0.8% to $2,383.50 per ounce. Palladium rose 2.3% to $1,826.59 per ounce.
