TLDR
- Safe-haven buying following fresh Israeli strikes on Tehran supported gold, though a resilient U.S. dollar limited the advance
- Thursday’s spot gold trading ranged between $5,121 and $5,156 per ounce, marking a nearly 20% gain for the year
- Gold reached an all-time peak of $5,594.82 in January 2026 before surging past $5,400 when U.S.-Israeli air operations against Iran commenced
- Market participants anticipate the Federal Reserve will maintain current rates at its March 18 policy meeting
- Kevin Warsh, a former Fed Governor, received President Trump’s formal nomination for Fed chair position on Wednesday
Gold markets experienced conflicting pressures Thursday as Middle East warfare encouraged defensive positioning while a firmer U.S. dollar increased purchasing costs for international buyers.
Spot gold fluctuated between $5,121 and $5,156 per ounce throughout Thursday’s trading. Earlier in the session, prices briefly exceeded $5,200 before retreating.
The precious metal has advanced nearly 20% during 2026. January saw gold establish a record peak of $5,594.82.
When air operations by U.S. and Israeli forces against Iran began earlier this week, gold surged beyond $5,400 on Monday. Investors seeking shelter from escalating hostilities drove that rally.
Israel conducted another extensive strike campaign against Tehran on Thursday. Military officials stated the operations focused on infrastructure controlled by Iranian government entities.
The assault followed Iranian missile launches that forced millions of Israeli citizens into protective shelters.
Safe-Haven Demand vs. Dollar Strength
The U.S. dollar advanced approximately 0.2% on Thursday, temporarily stepping back from three-month peaks. A robust dollar typically constrains gold appreciation because it increases the metal’s cost in foreign currencies.
Hamad Hussain, a climate and commodities economist at Capital Economics, noted the conflict generates opposing pressures for gold. Safe-haven appetite supports prices higher, while elevated energy costs could fuel inflation and diminish prospects for rate reductions — factors that would pressure gold.
Gold produces no yield, making it more attractive during periods of low interest rates.
Fed Policy in Focus
President Trump formally announced Kevin Warsh, a former Federal Reserve Governor, as his selection for the next Fed chair on Wednesday.
The Fed published its latest Beige Book on Wednesday. The report indicated U.S. economic activity expanded modestly, prices continued their upward trajectory, and employment remained steady.
Market participants currently anticipate the Fed will maintain its current rate stance at the March 18 policy meeting, based on CME Group’s FedWatch tool.
Investors are monitoring weekly jobless claims data scheduled for Thursday and the February employment report arriving Friday. These releases could provide additional insight into future monetary policy direction.
Worries about climbing energy prices are intensifying inflation anxiety throughout global financial markets.
Silver climbed 0.8% to $84.10 per ounce on Thursday. Platinum advanced nearly 1% to $2,168.05, while palladium declined 0.9% to $1,659.35.
