Gold rallies amid fears of prolonged Middle East tensions

March 03, 2026 (MLN): Gold extended its gains on Tuesday, with prices climbing as mounting geopolitical tensions in the Middle East drove investors toward traditional safe-haven assets.

Concerns that the intensifying U.S.- and Israel-led military action against Iran could evolve into a drawn-out regional conflict have fueled uncertainty across global markets.

Currently, spot gold is up 1.52% to $5,356.34 an ounce as of [10:20 am] PST, according to data reported by Mettis Global.

Iranian media reported that the Strait of Hormuz had been closed and warned that Iran would open fire on any vessel attempting to cross the key shipping route.

The warning represents Tehran’s clearest signal yet after it said that it was shutting the critical export corridor  a move that could disrupt nearly 20% of global oil flows and potentially trigger a sharp rise in crude prices, CNBC reported.

The U.S. dollar hovered near a more than five-week peak reached on Monday, underpinned by safe-haven demand and cautious investor sentiment.

Although a stronger dollar generally pressures gold by making it costlier for overseas buyers, both assets can attract inflows during periods of severe geopolitical stress.

U.S. President Donald Trump said the campaign would continue as long as necessary.

The escalation has drawn the Gulf deeper into conflict, causing civilian casualties in Iran, Israel and Lebanon, disrupting international air travel, and bringing shipping activity in the Strait of Hormuz to a standstill.

Elsewhere, spot silver gained 1.4% to $90.67 per ounce.

Platinum added 0.6% to $2,316.50, while palladium advanced 1.6% to $1,795.08.

Copyright Mettis Link News