Key Highlights
- Coordinated US-Israel military operations in Iran resulted in the death of Supreme Leader Ayatollah Ali Khamenei during weekend strikes
- Precious metals rallied with gold climbing over 2% to reach $5,400 per ounce, marking the highest valuation since January’s close
- Crude oil experienced its largest single-day surge in four years amid concerns over Strait of Hormuz shipping disruptions
- Precious metals across the board saw gains as silver, platinum, and palladium followed gold’s upward trajectory during the flight to safety
- Market analysts identify $5,595 and $6,000 as critical resistance levels for gold’s continued advance
Precious metals experienced a sharp rally Monday following coordinated weekend military operations by the United States and Israel targeting locations in Iran. The strikes resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.
Spot gold advanced 2.4% to reach $5,406 per ounce during early Asian market hours. This performance followed the previous week’s gain exceeding 3%.
Gold futures contracts in the United States climbed 2.8% to settle at $5,391.46. The yellow metal has accumulated approximately 25% in gains throughout the current year.
Tehran’s military forces launched retaliatory missile attacks targeting Israel and American military installations across Qatar, the UAE, Kuwait, and Bahrain. President Donald Trump announced that operations against Iran would persist until Washington achieves its stated objectives.
Ali Larijani, Iran’s national security chief, declared via social media channels that Tehran has no intention of entering negotiations with Washington. The statement indicates the likelihood of prolonged regional tensions.
Financial markets responded swiftly to the developments. Capital flowed away from equities toward safe-haven instruments including gold and various commodities.
Oil prices experienced their steepest increase in four years at Monday’s market opening. Market participants expressed concern regarding potential disruptions to the Strait of Hormuz, a critical waterway for international petroleum transport.
Saudi Aramco suspended operations at one refinery following a drone strike in the vicinity, sources with knowledge of the situation reported. This development added upward momentum to crude prices.
Precious Metals Rally Above $5,400 During Regional Crisis
Silver advanced 2.4% to $96.04 per ounce. Platinum registered gains of 1.7% while palladium climbed 3.1%.
Copper futures posted modest advances, with London Metal Exchange contracts increasing 0.3%.
The US dollar strengthened concurrently, with the Bloomberg Dollar Spot Index advancing as much as 0.7%. Despite the typical inverse relationship between dollar strength and commodity valuations, gold and oil prices rose simultaneously.
“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.”
Market Strategists Eye $5,595 and $6,000 Price Targets
Michael Brown, Senior Research Strategist at Pepperstone, identified $5,400 as the initial resistance level, with the late-January record high of $5,595 per ounce representing the next milestone.
Brown indicated that the weekend’s geopolitical developments reinforce bullish fundamentals for gold. His analysis suggests a possible advance toward $6,000 before 2026 concludes.
Strategists at ING observed that any interruption to energy supply chains would provide additional support for gold through elevated oil prices and heightened inflation expectations.
Multiple factors have underpinned gold’s performance this year, including sustained central bank purchases, portfolio reallocation away from sovereign debt instruments, and market expectations for Federal Reserve rate reductions. February represented the seventh consecutive monthly advance for the metal, establishing the longest winning streak 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 trading at $5,406.27 as of Monday afternoon in Singapore.
