Gold soars early Monday on haven demand following the U.S. and Israel strikes on Iran over the weekend, killing the Islamic republic’s Supreme Leader Ali Khamenei and prompting reprisal attacks throughout the Mideast.
The conflict added to a historic rally in gold, which rallied for a seventh consecutive month in February, the longest rising streak since 1973. Prices gained 21% in the first two months of the year on geopolitical and economic unpredictability, including the situation in the Middle East, tariff uncertainty and concerns about the Federal Reserve’s independence.
April gold futures gained 3.3% last week to settle at $5,247.90 an ounce on Comex after increasing 1% Friday. Bullion surged 11% in February after climbing 9.3% in January and rising 2% in December. It rallied 64% last year. The April contract is currently up $95.40 (+1.82%) an ounce to $5343.30 and the DG spot price is $5317.60.
U.S. President Donald Trump told The New York Times on Sunday that the conflict could last weeks. Meanwhile, Iran struck Arab states in the Persian Gulf region and Israel as the conflict dragged into Monday. Oil prices shot up.
News of the escalating conflict sent investors away from riskier assets. Gold is a traditional hedge against uncertainty.
In economic news, investors were awaiting key monthly jobs reports for February at the end of the week for signals on the state of the economy and the Fed’s potential moves on monetary policy. ISM Manufacturing data was due out early Monday. Lower interest rates are considered bullish for gold, making it a more attractive alternate investment. The central bank kept interest rates unchanged in January after three previous rate cuts.
Last week, the delayed producer price index for January report showed that core wholesale prices rose much more than expected. The measure is a key indicator of inflation.
Almost than 97% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep interest rates unchanged again this month, with the rest anticipating a 25 basis point cut. The Fed reduced interest rates for a third consecutive time in December to 3.50% to 3.75%. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Front-month silver futures rose 13% last week to settle at $93.29 an ounce on Comex after the May contract added 6.5% Friday. It touched a record above $115 in January. Silver gained 19% last month after advancing 11% in January and climbing 24% in December. It rose 141% last year. The May contract is currently down $2.851 (-3.06%) an ounce to $90.440 and the DG spot price is $90.02.
Spot palladium increased 1.9% last week to $1,799.00 an ounce after rising 1.5% Friday. Palladium gained 8.8% in February after advancing 2.4% in January and increasing 11% in December. Palladium gained 74% last year. The DG spot price is currently down $34.50 an ounce to $1784.00.
Spot platinum rose 9.3% last week to $2,365.60 an ounce after increasing 5.2% Friday. It advanced 15% last month after gaining 1.4% in January and surging 22% in December. Platinum increased 122% in 2025. The current DG spot price is down $84.00 an ounce to $2294.50.
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