Gold Prices Surge Amid Middle East Conflict, Boosting Safe-Haven Demand
March 6, 2026 – Reuters
Gold prices experienced a notable rebound on Friday, climbing 0.8% to $5,117.27 per ounce as investors sought refuge amid escalating geopolitical tensions in the Middle East. This rise follows a sharp drop of over 1% in gold prices during the previous trading session.
The ongoing conflict, now in its sixth day, has intensified uncertainty in global markets. Iran launched multiple attacks targeting Israel, the United Arab Emirates, and Qatar, further heightening fears of regional escalation. Statements from Iranian officials, including a recent declaration from Iran’s foreign minister about readiness for possible ground invasions by the U.S. or Israel, have increased concerns. These developments have been critical factors driving investors towards gold, a traditional safe-haven asset.
U.S. gold futures for April delivery mirrored the upward trend, rising by 1% to $5,126.70. Meanwhile, the U.S. dollar weakened by 0.3%, which also supported gold prices by making the precious metal cheaper for holders of other currencies.
Kelvin Wong, a senior market analyst at OANDA, highlighted that geopolitical risks remain significant and could continue escalating. He indicated key support levels for gold at $5,040 per ounce and resistance at $5,280 per ounce, noting that a breach of resistance could propel prices as high as $5,448. Despite recent setbacks, gold has gained approximately 18% so far this year, marking several successive record highs fueled by a mix of geopolitical instability and global economic worries, including spikes in energy prices and concerns over inflation.
Physical demand for gold has varied globally. In India, demand eased due to price volatility deterring buyers, while in China, premiums remained firm amid increased investor interest. In a related move, the CME Group recently reduced initial margin requirements on its COMEX gold and silver futures, potentially encouraging further market participation.
Other precious metals also saw gains alongside gold amid the geopolitical uncertainties. Spot silver jumped 2.4% to $84.12 per ounce, platinum rose nearly 1.4% to $2,150.70, and palladium increased by 2% to $1,662.72. Market participants are also closely watching the upcoming U.S. employment report for February, expected later in the day, which could further influence investor sentiment and precious metals pricing.
The sustained military tensions have drawn significant international attention. U.S. Defense Secretary Pete Hegseth and Admiral Brad Cooper, commander of U.S. forces in the Middle East, affirmed that the U.S. maintains sufficient munitions to continue its military operations indefinitely. The United States and Israel launched a coordinated military campaign against Iranian targets last Saturday, provoking retaliatory strikes by Iran.
As the conflict unfolds, uncertainty remains high in financial markets. Gold’s role as a safe-haven asset is anticipated to keep it volatile yet supported in the near term, as investors weigh developments in the Middle East alongside global economic data.
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Reporting by Noel John in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala