Gold prices surge past five thousand dollars as investors seek safety amid intensifying Middle East conflict

Gold prices rise 2% to $5,388 as U.S.-Israel strikes on Iran fuel global economic uncertainty and a massive flight to safe-haven assets.

By: AXL Media

Published: Mar 2, 2026, 8:30 AM EST

Source: The information in this article was sourced from Newsmax

Surge in Safe Haven Demand

The intensification of Operation Epic Fury and retaliatory strikes across the Gulf have driven investors to move capital out of risk-related assets and into bullion. Spot gold gained 2.1% during Monday's session, while U.S. gold futures rose 3% to trade above $5,400. Market analysts noted that the gains in gold are mirrored by significant losses in global equity markets, as the prospect of a multi-week military conflict in the Middle East upends financial stability.

Geopolitical Drivers of the Rally

The current rally is a direct response to the expanding theater of war, which now includes direct strikes on Iranian soil and retaliatory attacks on Gulf cities hosting U.S. military bases. The disruption of shipping through the Strait of Hormuz and the expansion of Israeli military operations into Lebanon have heightened fears of a protracted regional crisis. These events follow a year in which gold prices rose by 64%, supported by aggressive central bank purchasing and sustained inflows into exchange-traded funds.

Impact on Global Markets and Inflation

Global shares slid on Monday as the conflict threatened to reignite inflationary pressures through increased energy and logistics costs. Financial experts warn that a sustained military engagement could derail the global economic recovery. While gold and silver have strengthened, riskier assets have faced sharp declines, reflecting a broader market sentiment that prioritizes portfolio stability over growth during periods of extreme volatility.