Gold prices soared sharply on Monday, jumping 1.57% to $5,358.69 per ounce, as escalating military conflict in the Middle East drove investors toward safe-haven assets. The spike follows large-scale strikes by the United States and Israel on Iran, reportedly resulting in the death of Ayatollah Ali Khamenei.
Read More: DIB Pakistan Partners with Hakeem Easy Finance to Digitalize Shariah Process for Personal Finance
The dramatic escalation has injected fresh uncertainty into global markets, triggering a rush into gold—historically viewed as a hedge during political and economic instability.
Key Market Data
| Metric | Current Value | Change |
|---|---|---|
| Spot Gold | $5,358.69/oz | ▲ +1.57% |
| Silver | $92.72/oz | ▼ -1.2% |
| Platinum | $2,343.50/oz | ▼ -0.9% |
| Palladium | $1,795.11/oz | ▲ +0.5% |
Data as of 9:18 AM PST, March 2, 2026
What’s Driving the Surge
Three factors are fueling gold’s latest rally:
| Factor | Impact |
|---|---|
| Geopolitical Crisis | US-Israel strikes on Iran, reported death of Ayatollah Khamenei |
| Safe-Haven Demand | Investors fleeing risk assets amid Middle East escalation |
| Monetary Policy Expectations | Bets on Federal Reserve easing later in 2026 |
The Bigger Picture
This latest advance builds on a remarkable 64% rally in 2025—one of gold’s strongest years in decades. Sustained central bank purchases, robust ETF inflows, and expectations of looser U.S. monetary policy have created a perfect storm for the precious metal.
What Analysts Are Saying
Major financial institutions maintain strongly bullish outlooks:
“Continued demand from central banks and investors could drive gold prices to $6,300 per ounce by the end of 2026.”
— J.P. Morgan
*”Gold is on track to approach the $6,000 mark as geopolitical risks persist and rate-cut expectations build.”*
— Bank of America
Global Context: 64% Rally in 2025
Gold’s unprecedented run has been supported by:
✅ Central bank buying at record levels
✅ ETF inflows accelerating in H2 2025
✅ Dollar weakness against major currencies
✅ Inflation hedging demand
✅ Geopolitical uncertainty across multiple regions
What to Watch This Week
Markets now shift focus to critical U.S. economic data that could influence Fed policy:
| Report | Due Date | Potential Impact |
|---|---|---|
| ADP Employment Report | March 4 | Labor market strength |
| Weekly Jobless Claims | March 5 | Employment trends |
| Nonfarm Payrolls | March 6 | Fed policy signal |
Inflation Complicates the Picture
Recent U.S. producer prices increased more than anticipated in January, raising concerns that inflationary pressures may intensify. This adds complexity to the Fed’s rate-cut timeline—and by extension, gold’s trajectory.
Other Precious Metals Mixed
| Metal | Price | Performance |
|---|---|---|
| Silver | $92.72/oz | ▼ Down 1.2% (after monthly gain) |
| Platinum | $2,343.50/oz | ▼ Down nearly 1% |
| Palladium | $1,795.11/oz | ▲ Up 0.5% |
Expert Takeaway
“Gold’s surge past $5,350 is purely a geopolitical reaction. But the broader trend—up 64% in 2025—reflects deeper structural shifts: central bank diversification, ETF adoption, and expectations of U.S. rate cuts. The Middle East crisis adds rocket fuel to an already hot market.”
