TLDR
- Coordinated US-Israel military operations in Iran resulted in the death of Supreme Leader Ayatollah Ali Khamenei over the weekend
- Precious metals rallied with gold climbing more than 2% to surpass $5,400 per ounce, reaching levels not seen since January
- Crude oil prices experienced their largest single-day jump in four years amid concerns over Strait of Hormuz supply routes
- Precious metals including silver, platinum, and palladium posted gains as capital flowed toward safe-haven investments
- Market strategists are monitoring key resistance levels at $5,595 and $6,000 for gold’s next potential targets
Precious metals experienced a sharp rally on Monday following weekend military strikes conducted by the United States and Israel against Iranian targets. The operations resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.
The spot price for gold increased 2.4% to reach $5,406 per ounce during early Asian market hours. This advance follows the previous week’s gain exceeding 3%.
Gold futures traded in the United States rose 2.8% to $5,391.46. Year-to-date, the precious metal has appreciated approximately 25%.
Tehran launched retaliatory missile attacks targeting Israel and American military installations across Qatar, the UAE, Kuwait, and Bahrain. President Donald Trump announced that military operations against Iran would persist until achieving stated objectives.
Ali Larijani, Iran’s national security chief, declared via social media that negotiations with the United States were off the table. This position suggests the regional conflict may extend for a considerable period.
Financial markets demonstrated immediate reaction. Capital rotated away from equities toward traditional safe-haven investments including gold and commodities.
Oil prices posted their most significant one-day advance in four years at Monday’s market open. Market participants expressed concern regarding potential disruptions to the Strait of Hormuz, a critical passage for international petroleum transport.
According to sources with knowledge of the situation, Saudi Aramco temporarily suspended operations at a refinery facility following a drone attack in the vicinity. 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 registered a 1.7% gain while palladium increased 3.1%.
Copper futures showed modest appreciation, with London Metal Exchange contracts advancing 0.3%.
The US dollar strengthened as well, with the Bloomberg Dollar Spot Index rising as much as 0.7%. Under typical circumstances, a firmer dollar would constrain commodity valuations, yet gold and oil advanced 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 an initial resistance level to monitor, with the late-January peak of $5,595 per ounce representing the subsequent target.
Brown indicated that the weekend’s military developments reinforce the bullish outlook for gold. He also projects a possible advance toward $6,000 before the conclusion of 2026.
Strategists at ING observed that any interruption to energy supply chains would provide additional support for gold through elevated oil prices and inflation expectations.
Multiple factors have underpinned gold’s performance this year, including central bank purchases, reduced exposure to sovereign debt instruments, and market expectations for Federal Reserve interest rate reductions. February represented the metal’s seventh consecutive monthly advance — the longest winning streak recorded 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 quoted at $5,406.27 as of Monday afternoon trading in Singapore.
