Gold surged sharply on Monday after renewed US and Israeli strikes on Iran triggered a fresh flight into traditional safe-haven assets, with bullion hitting its highest levels in more than a month amid fears of escalating geopolitical risk and economic uncertainty.
Read also:Â Japaul Gold targets 10-fold output rise with new processing plants
According to Reuters, spot gold gained 2.3% to $5,395.99 an ounce as of 0914 GMT, after hitting a more than four-week high earlier in the session. The metal hit a record high of $5,594.82 on January 29.
U.S. gold futures rose 3.1% to $5,411.40 per ounce.
“What we’re seeing is an increase in safe-haven assets, which is reflected in the gains in gold and also reflected in the losses of risk-related assets, such as stocks,” said ActivTrades analyst Ricardo Evangelista to Reuters
Read also: Gold, silver slump sends Africa’s top stock market to biggest fall since 2020
The market reaction followed reports that the United States and Israel launched major strikes on Iranian targets over the weekend, during which Supreme Leader Ayatollah Ali Khamenei was killed, and Iran responded with waves of missile attacks. The swift escalation intensified fears that the conflict could broaden and that higher energy prices and regional instability might dent global economic growth.
Analysts said the jump in gold reflects a classic “risk off” shift, as investors seek assets perceived as safer when uncertainty rises, and move away from riskier investments such as stocks. Silver also rose, while platinum and other metals saw mixed moves.
Read also:Â Gold breaks $5,000 mark for first time, raising gains for Ghana, Uganda others
The broader market has also been sharply affected. Oil prices strengthened on concerns about supply disruptions through the Strait of Hormuz, a key global energy artery, and stock markets were on the back foot as traders weighed the economic implications of a potentially protracted conflict.
