Gold rebounds as Iran war escalates, dollar eases

Gold prices rose on Wednesday, March 4, 2026, as intensifying conflict in the Middle East drove buying of safe haven assets, while a pause in the US dollar’s earlier surge added support, Reuters reported.

Spot gold climbed 0.7% to $5,120.71 an ounce at 6.31pm GMT, after sliding more than 4% on Tuesday. US gold futures for April delivery settled 0.2% higher at $5,134.70.

“The dollar was weaker after its earlier rally, which helped support gold. Overall, the macro fundamentals remain very positive for gold. Of course, as long as the war with Iran continues, it will remain supportive as well,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

“There is still a risk that volatility will continue, but I remain constructive and think we could see another fresh record high,” he said.

The dollar weakened after a sharp rise on Tuesday. A softer dollar makes gold, which is priced in dollars, cheaper for holders of other currencies.

The US Iran war broadened significantly after a US submarine sank an Iranian warship off the coast of Sri Lanka, killing at least 80 people, while Nato air defence systems intercepted Iranian long-range missiles fired towards Turkey.

Gold, a non-yielding asset, is often used as a hedge against uncertainty and inflation and tends to be in demand when interest rates are low.

Meanwhile, ADP’s nationwide employment report showed US private payrolls increased more than expected in February, although the prior month’s data was sharply revised down.

Investors are watching the US February jobs report due on Friday.

Economists polled by Reuters expect non-farm payrolls to rise by 59,000 jobs last month, after accelerating to 130,000 in January.

In other precious metals, spot silver rose 1.3% to $83.07 an ounce after dropping more than 8% in the previous session.

Spot platinum gained 2.8% to $2,141.71 an ounce, while palladium rose 1.2% to $1,667.51.

The World Platinum Investment Council said the global platinum market is heading for a fourth consecutive annual deficit in 2026, as supply remains below demand.

In an early update on Thursday, March 5, 2026, Bloomberg reported spot gold was up 0.3% at $5,154.66 an ounce at 7.19am Singapore time. Silver added 0.1% to $83.67, while platinum and palladium both moved higher

Bloomberg Dollar Spot Index, a gauge of the US dollar, fell 0.3% in the previous session.