Gold prices surged more than 2% during Asian trading on Monday, as investors flocked to safe-haven assets following major U.S. and Israeli strikes on Iran that reportedly killed Supreme Leader Ayatollah Ali Khamenei.
Spot gold climbed 2% to $5,380.55 per ounce by 01:33 ET (06:33 GMT), after touching an intraday high of $5,393.34 per ounce — its strongest level since late January. U.S. gold futures advanced even further, rising 2.8% to $5,391.46.
Middle East Conflict Drives Safe-Haven Demand for Gold
Financial markets reacted sharply to the latest escalation in the Middle East. The killing of Iran’s top leader intensified fears of a wider regional conflict and raised concerns about possible disruptions to oil shipments through the Strait of Hormuz, a vital global energy route.
Israeli forces launched additional strikes on Tehran on Sunday, targeting military infrastructure and air defence systems. Iran retaliated with further missile attacks aimed at Israeli territory and U.S. bases in the Gulf region.
The geopolitical shock triggered a broad risk-off move across global markets. Equity indices fell, while crude oil prices jumped sharply. This environment boosted demand for gold as a traditional store of value during periods of uncertainty.
Analysts at ING noted that any regional spillover or prolonged disruption to energy supplies could further support gold prices. Higher oil prices may fuel inflation expectations while real yields remain contained — a combination that typically strengthens bullion.
Key Gold Price Levels in Focus
Michael Brown, Senior Research Strategist at Pepperstone, highlighted $5,400 per ounce as an important resistance level to monitor. Beyond that, he pointed to the late-January record high of $5,595 per ounce as the next major upside target.
Brown added that recent developments reinforce the strong fundamental outlook for gold. In his view, continued safe-haven inflows, along with solid retail and central bank demand, could provide additional support. He also sees the potential for gold to approach the $6,000 per ounce level by year-end.
Gold has gained nearly 25% so far this year, supported by ongoing geopolitical tensions, central bank buying and expectations of Federal Reserve policy easing.
Among other precious metals, silver rose 1.3% to $95.15 per ounce, while platinum increased nearly 1% to $2,389.11 per ounce.
In base metals, benchmark copper futures on the London Metal Exchange edged up 0.3% to $13,411 per ton. U.S. copper futures also rose 0.2% to $6.07 per pound.
