Gold extends gain as middle east war widens
Gold rose as investors sought safety on fears the Middle East conflict could drag on, while a stronger dollar made bullion pricier for non-dollar buyers
Global gold prices continued to rise, driven by concerns that the war in the Middle East could be prolonged after the United States joined Israel in striking Iran, followed by Iran’s retaliation and attacks on other Arab countries.
Reuters reported that gold, a safe-haven asset, advanced on Monday, March 2, 2026 (New York time), on worries about a prolonged conflict in the Middle East following US and Israeli strikes on Iran.
Spot gold rose 0.4% to $5,297.31 per ounce at 18:31 GMT (1:31 a.m. Tuesday in Thailand), easing slightly after jumping more than 2% earlier in the session. Gold hit a record high of $5,594.82 on January 29.
US gold futures settled 1.2% higher at $5,311.60.
The US dollar index rose 1%, making dollar-priced gold more expensive for holders of other currencies.
“Right now, the market is trying to assess whether there will be more of these attacks in the weeks ahead,” David Meger, director of metals trading at High Ridge Futures, said. “I think that uncertainty is likely to support prices.”
Air war expands on Monday
The air war involving US and Israeli attacks on Iran broadened with no sign of ending, as Israel struck Lebanon in response to attacks by Hezbollah, while Tehran continued launching missiles and drones at Gulf states.
US President Donald Trump said a “major wave” of additional attacks would come soon, without giving details.
Oil and gas prices surged as attacks forced the shutdown of oil and gas facilities across the Middle East and disrupted shipping through the crucial Strait of Hormuz.
Analysts at SP Angel said rising geopolitical fragmentation had encouraged central banks in BRIC countries to cut exposure to dollar-priced assets and increase gold holdings, and they expected the trend to continue.
BNP Paribas said investment demand for bullion was expected to be a key driver this year.
Gold, long viewed as a safe haven in times of uncertainty, has set multiple records and risen almost 23% this year, building on a sharp 64% rally in 2025 fuelled by strong central-bank buying, large ETF inflows and a shift towards looser US monetary policy.
Three industry sources said bullion flows in and out of Dubai’s gold-trading hub were expected to fall sharply in the coming days as airlines cancelled flights due to the conflict.
On the data front, markets will watch the ADP employment report, weekly jobless claims and the US non-farm payrolls report this week.
Among other metals, spot silver fell 5.7% to $88.46 an ounce, after hitting its highest level since January 30. Spot platinum slipped 2.7% to $2,300.50, while spot palladium eased 0.9% to $1,770.66.
Morning price update (March 3, 2026)
Bloomberg reported that spot gold rose 0.4% to $5,342.99 an ounce at 7:53 a.m. in Singapore. Silver gained 0.6% to $89.87 after closing down 4.7% on Monday.
Platinum and palladium also rose. The Bloomberg Dollar Spot Index slipped 0.1% after closing 0.7% higher in the previous session.
Gold rose for a fifth straight day as escalating conflict in the Middle East disrupted global energy markets and pushed investors towards safer assets.
Bullion held above $5,340 an ounce in early Tuesday trading in Asia after closing the prior session up 0.8%.
President Donald Trump said the US would continue military action against Iran for as long as necessary, while Tehran attacked oil and gas infrastructure and threatened shipping in the region.
The surge in oil and gas prices has stoked inflation concerns in the US, pushing down US Treasury prices and raising the likelihood the Federal Reserve will keep rates unchanged for longer.
Investors are now pricing in a potential rate cut by September, later than previously expected. While higher rates can weigh on gold because it does not pay interest, they can also reinforce gold’s role as a store of value.
Gold has climbed nearly 25% this year, supported by prolonged geopolitical and trade tensions, concerns over the independence of the US central bank, and a broader move away from bonds and currencies — sometimes described as a “debasement” trade — adding fresh momentum to bullion’s multi-year rally.
The metal hit a record high of about $5,595 an ounce in late January.
