Global Economy
Gold Surges to $5,400 an Ounce Amid Escalating Geopolitical Tensions
Gold prices leapt more than 2 % on Monday, topping $5,400 per ounce – the highest level in over a month – as investors rushed to safe‑haven assets following joint U.S.–Israeli strikes on Iran. The attacks, which killed Iran’s supreme leader Ayatollah Ali Khamenei, sparked regional retaliation and heightened uncertainty in the Gulf, prompting central banks to boost their gold holdings and prompting a broad shift away from sovereign bonds and the dollar. February marked the seventh straight month of gains for gold, the longest winning streak since 1973, underscoring how geopolitical risk is now a key driver of the market.
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Gold prices jumped more than 2% on Monday, reaching $5,400 per ounce, the highest level in over a month.
The rally was sparked by the joint U.S.–Israeli airstrikes against Iran over the weekend, which resulted in the death of Iran’s supreme leader Ayatollah Ali Khamenei and heightened regional instability, especially in the strategic Gulf shipping lanes.
In retaliation, Iran launched attacks on U.S. bases across the Gulf region, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria.
Why the gold market is soaring
- Geopolitical risk: The escalating conflict has driven investors toward safe‑haven assets.
- Central‑bank buying: Several central banks have increased their gold holdings, adding to demand.
- Shift from sovereign debt and the dollar: Risk‑averse investors are pulling back from government bonds and the greenback, further strengthening gold’s appeal.
February also marked the seventh consecutive month of gold price gains – the longest winning streak since 1973 – as tensions continue to mount and the international order is reshaped.
Analysts expect the metal to remain volatile but to hold its elevated levels as long as geopolitical uncertainty persists.