Gold up on heightened geopolitical uncertainty

March 02, 2026 (MLN): Gold prices climbed sharply on Monday as escalating tensions in the Middle East fueled a rush into safe-haven assets.

The move followed a dramatic escalation in the region after the United States and Israel carried out large-scale strikes on Iran, reportedly resulting in the death of  Ayatollah Ali Khamenei.

The developments have intensified geopolitical risks and added fresh uncertainty to the global economic outlook.

Currently, spot gold went up 1.57% to $5,358.69 an ounce as of [9:18 am] PST, according to data reported by Mettis Global.

Gold, traditionally viewed as a hedge during periods of political and economic instability, has already reached multiple record highs this year amid persistent global uncertainty.

The latest advance builds on a remarkable 64% rally in 2025, supported by sustained central bank purchases, strong inflows into exchange-traded funds, and expectations that the Federal Reserve may ease monetary policy, CNBC reported.

Gold has surged as much as more than 2% to its highest level in more than four weeks.

Major financial institutions have maintained bullish outlooks on the metal. J.P. Morgan and Bank of America last week reiterated projections that gold could approach the $6,000 mark.

J.P. Morgan said continued demand from central banks and investors could drive prices to $6,300 per ounce by the end of 2026.

Meanwhile, recent U.S. economic data added another layer of complexity to the outlook,  producer prices increased more than anticipated in January, raising concerns that inflationary pressures may intensify in the coming months.

Attention is now pilled towards key U.S. labor market data due this week, including the ADP employment report, weekly jobless claims, and the closely watched nonfarm payrolls report.

In other precious metals, spot silver fell 1.2% to $92.72 an ounce after posting a monthly gain in February.

Platinum declined nearly 1% to $2,343.50, while palladium edged up 0.5% to $1,795.11 per ounce.

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