Gold climbs 1% as US-Israeli strikes on Iran fuel safe-haven demand
The US dollar strengthened, making dollar-denominated assets such as bullion more expensive for other currency holders
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[BENGALURU] Gold prices rose 1 per cent on Wednesday (Mar 4), rebounding from a more than one-week low hit in the previous session, as escalating US-Israeli air strikes against Iran heightened geopolitical uncertainty and supported safe-haven demand.
Spot gold gained 1 per cent to US$5,138.46 per ounce as at 8.52 am. On Tuesday, bullion fell to its lowest since Feb 20, weighed by a firmer US dollar and dimming rate-cut prospects as inflation concerns intensified amid fears of a potentially prolonged Middle East conflict.
US gold futures for April delivery added 0.5 per cent to US$5,147.10.
The US dollar strengthened, making dollar-denominated assets such as bullion more expensive for other currency holders.
Four days into the war, US President Donald Trump told reporters that the US military had struck numerous Iranian naval and air targets, saying that “just about everything has been knocked out.”
Global oil and gas prices surged as the US-Israeli war on Iran halted energy exports from the Middle East, with Tehran attacking ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq.
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Global stock markets slid as the disruption of Middle East energy supplies exacerbated investor concerns about inflation.
Spot gold has risen 19 per cent year-to-date, driven by global turmoil, after surging 64 per cent in 2025. Meanwhile, silver rose more than 16 per cent so far this year.
Spot silver advanced 1.4 per cent to US$83.27 per ounce on Wednesday, after falling more than 8 per cent in the last session.
“ETP outflows are keeping silver vulnerable to volatility in the near-term and are key to track, but an undersupplied market suggests a recovery in the coming months,” Standard Chartered said in a note.
Spot platinum added 1 per cent to US$2,104.25 per ounce, while palladium gained 0.4 per cent to US$1,653. REUTERS
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