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Gold Prices Surge for 5th Day as Middle East Conflict Escalates

Gold prices extended their rally for a fifth consecutive session, driven by escalating Middle East tensions and a spike in energy prices. The conflict has pushed investors toward safe-haven assets while raising inflation concerns that may influence the Federal Reserve's interest rate policy. Oil prices surged following reports of Iranian retaliatory strikes on energy infrastructure, heightening fears of supply disruption. Market participants are now awaiting key US economic data for further direction on monetary policy.

Key Points: Gold Rises on Middle East Tensions, Inflation Fears

  • Gold gains for 5th straight session
  • Middle East tensions drive safe-haven demand
  • Oil price spike fuels inflation worries
  • Fed rate outlook under scrutiny
2 min read

Gold prices rise for 5th day over Middle East tensions

Gold prices climb for fifth session amid Middle East conflict, oil price spike, and inflation concerns impacting Fed policy outlook.

"Tensions in West Asia pushed investors toward safe‑haven assets - Market Report"

New Delhi, March 3

Gold prices climbed for a fifth straight session in the global markets on Tuesday amid escalating conflict in the Middle East and a spike in energy prices.

MCX gold April futures gained 2.53 per cent to Rs 1,66,199 per 10 grams on Monday, while MCX silver May futures eased 0.90 per cent to Rs 2,80,090 per kg.

India's Multi Commodity Exchange will remain closed for the first half of trading on Tuesday for Holi, with evening trading resuming at 5 pm.

Tensions in West Asia pushed investors toward safe‑haven assets and raised concerns about inflation in the US and about the Federal Reserve leaving interest rates unchanged for longer.

Spot gold rose 0.8 per cent to $5,360 an ounce, while US gold futures gained roughly 1 per cent and spot silver advanced about 1.9 per cent to $91.11 an ounce.

The dollar index surged 0.19 per cent to 98.57, making greenback-backed bullion expensive for buyers in overseas currencies, capping further gains in the yellow metal.

US President Donald Trump said the military offensive against Iran will continue for as long as it takes. Tehran reportedly targeted oil and gas infrastructure in Saudi Arabia and threatened shipping in the strategic Strait of Hormuz. Meanwhile, Israel announced a "wave of strikes" targeting Iran's command centres.

Iran's retaliatory strikes on oil and gas facilities have heightened fears of supply disruption, lifting oil prices and stoking inflation worries.

US crude futures rose 1.4 per cent to $72.23. Brent crude gained 1.87 per cent to trade at $79.2 per barrel in early session on Tuesday.

Investors remain keen on cues from US Manufacturing and Non-Manufacturing PMI, ADP Non-Farm Employment Change and Unemployment data for assessing direction of Federal Reserve policy.

Gold has rallied nearly 25 per cent in 2026 after rising 64 per cent last year amid robust central bank buying, inflows into exchange‑traded funds and concerns about the US Federal Reserve's independence.

- IANS

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Reader Comments

R
Rohit P
Perfect timing with Holi! Market closed, so we can't even react. Smart move by some investors who bought last week. Silver also moving up means industrial demand fears are real. Stay safe, everyone. 🪙
A
Aman W
While the article is informative, it focuses heavily on global factors. It should also discuss the impact of domestic demand, especially with the upcoming wedding season and Akshaya Tritiya. Local jewellers' stock levels matter too.
S
Sarah B
The link between oil prices and gold inflation is so clear. When petrol prices go up in India, everything becomes expensive, and people turn to gold as a hedge. It's a vicious cycle. Hope for peace soon.
V
Vikram M
My father always said, "In times of trouble, gold shines." He was right. But at these prices, middle-class saving for a house or education is suffering. Global politics shouldn't dictate our financial security so much.
K
Karthik V
The 25% rally this year is insane! Shows how nervous the world is. Maybe it's time to look at digital gold or sovereign gold bonds as alternatives for small investors. Physical gold has too many making charges now.

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