Gold and Silver Rise as Middle East Tensions Fuel Safe-Haven Demand

Gold and silver prices advanced on Thursday (March 5) as escalating geopolitical tensions in the Middle East and currency movements influenced global bullion markets. Analysts said a mix of safe-haven demand and macroeconomic factors has been driving volatility in precious metals.

Dollar Weakness Supports Bullion

Spot gold rose 0.8 percent to $5,176.69 per ounce in early trade, while US gold futures for April delivery gained 1 percent to $5,186. A slight decline in the US dollar made dollar-denominated gold cheaper for holders of other currencies, providing additional support to bullion prices.

Escalation in US–Iran Conflict Lifts Safe-Haven Demand

The gains followed an escalation in the US–Iran conflict, after reports that a US submarine sank an Iranian warship off Sri Lanka and NATO air defence systems intercepted a ballistic missile heading toward Turkey. The developments have heightened concerns about a wider regional conflict and the possibility of disruptions to oil flows through the Strait of Hormuz, a key global energy route.

Gold Up Nearly 20% This Year

Gold, traditionally viewed as a safe-haven asset, has climbed roughly 20 percent so far this year and has repeatedly touched record highs, supported by geopolitical uncertainty and broader economic concerns.

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