Washington: Gold prices climbed on Monday after the United States and Israel launched major strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei and intensifying geopolitical tensions. Investors rushed toward safe-haven assets as uncertainty gripped global markets.
Spot gold rose 1.37% to $5,349.44 an ounce by 0439 GMT, after touching its highest level in more than four weeks. Earlier in the session, bullion gained as much as 2%. Meanwhile, U.S. gold futures advanced 2.21% to $5,362.60 per ounce.
The rally followed renewed Israeli strikes on Tehran and fresh Iranian missile barrages, escalating fears of a prolonged regional conflict. Analysts said the current escalation carries stronger incentives for both sides to continue military action, potentially fueling sustained volatility.
“Unlike previous flare-ups, this situation risks creating a chaotic and uncertain environment,” said analyst Kyle Rodda, noting that the outlook remains supportive for gold.
However, the U.S. dollar index rose 0.27%, limiting further gains by making gold more expensive for overseas buyers.
Gold has already posted successive record highs this year, driven by political instability and economic concerns. The latest surge builds on a 64% rally in 2025, supported by strong central bank purchases, solid exchange-traded fund inflows and expectations of U.S. monetary easing.
Independent analyst Ross Norman said gold reflects rising global anxiety and could reach fresh records amid deepening uncertainty.
Meanwhile, recent data showed U.S. producer prices increased more than expected in January, signaling potential inflationary pressures. Investors now await key labor market reports, including the ADP employment survey and non-farm payrolls data.
Elsewhere, spot silver fell 0.3% to $93.54, platinum held steady at $2,363.26, and palladium gained 0.86% to $1,801.50.
