Gold Soars Past $5,380 As Middle East War Triggers Global Flight To Safety

SINGAPORE — Spot gold climbed nearly 2% in early Monday trading, reaching $5,380.91 an ounce, as the world woke up to a transformed Middle East. The rally follows a weekend where the geopolitical “powder keg” finally exploded, with American and Israeli forces striking over 1,000 targets in Iran, and Tehran responding with a massive missile barrage across Qatar, the UAE, Kuwait, and Bahrain.

1. The “Safe-Haven” Stampede

Investors are moving aggressively into precious metals to hedge against what experts call “extraordinary regional uncertainty.”

• The Record Streak: February marked gold’s seventh consecutive monthly gain, the longest winning streak for the metal since 1973.
• Decoupling from the Dollar: Traditionally, a stronger dollar suppresses gold. However, both are rising simultaneously today. “This demonstrates that hard assets are the true hard currency during this period,” noted Hong Hao of Lotus Asset Management.
• Silver & PGMs: The rally isn’t limited to gold; silver advanced 2.4% to $96.04, while platinum and palladium also posted significant gains.

2. The “Trump Factor” and Global Upheaval

Market analysts point to the aggressive foreign policy of President Donald Trump as a primary driver of gold’s 25% year-to-date gain.

• Geopolitical Volatility: From the seizure of Nicolás Maduro in January to threats regarding the annexation of Greenland, the administration’s “unpredictable” doctrine has pushed central banks to stockpile bullion.
• Sovereign Shift: There is a widening investor shift away from traditional government bonds, which are increasingly viewed as risky amid the current international upheaval.

3. Energy and Trade Turmoil

The military confrontation has effectively shuttered the Strait of Hormuz, the world’s most vital oil artery.

• Oil Surge: Crude prices saw their most violent spike in four years this morning.
• Retaliatory Strikes: Iran’s “waves of missiles” targeting US bases in the Gulf have paralyzed regional shipping and logistics, further driving the “fear trade” in commodities.

Market Snapshot: Monday, March 2, 2026 (7:40 AM SGT)