Gold Price Climbs Above $5,370 Amid Escalating US-Iran Tensions
Gold surged more than 1% on Monday to trade above $5,370 per ounce, extending its strong upward momentum as investors sought safety following a sharp escalation in Middle East tensions. The move came after joint military strikes by the United States and Israel on Iran over the weekend reportedly killed Iran’s Supreme Leader, Ali Khamenei.
The developments triggered retaliatory actions from Tehran targeting US-linked assets across the region, including bases in the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq, and Syria. Maritime traffic through the Strait of Hormuz a vital corridor for global oil and gas shipments was also disrupted, adding to market anxiety.
Gold recorded its seventh consecutive monthly gain in February, marking its longest winning streak since 1973. The rally has been underpinned by geopolitical uncertainty, sustained central bank buying, and a broader investor rotation away from sovereign bonds and major currencies.
Silver Prices Jump to One-Month High
Silver climbed as much as 2.8% to $96.4 per ounce before trimming gains, reaching its highest level in over a month. The metal tracked gold higher as safe-haven demand intensified.
In the United States, stronger-than-expected producer price data added complexity to the inflation outlook, reinforcing speculation that the Federal Reserve may still deliver two quarter-point rate cuts this year if geopolitical risks weigh further on economic stability.
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