Global Gold Prices Rise After Iran Attack, Then Fall More Than 6 Per Cent

Gold prices briefly surged following the latest Middle East conflict, but the gains did not hold.

Gold prices rose on 28 February from $5,296 to $5,423 per troy ounce, or approximately 91.45 million rupiah per troy ounce at an exchange rate of 16,888 rupiah per dollar. One troy ounce is equivalent to 31.1 grams.

The spike followed the typical pattern in financial markets. Geopolitical tensions often drive investors to switch to safe-haven assets such as gold.

Selling pressure emerged shortly after the rise.

Gold prices fell more than 6 per cent to $5,085 per troy ounce on 3 March, or approximately 85.88 million rupiah per troy ounce.

Price movements in recent days have tended to be flat, remaining in the range of $5,050 to $5,200 per troy ounce.

Strengthening of the US dollar and rising US Treasury yields emerged as the main factors restraining gold price increases.

Ross Norman, Chief Executive Officer of Metals Daily, said these conditions made investors more interested in yield-bearing assets such as government bonds.

Rising oil prices also increased concerns about higher inflation.

Rising inflation could potentially drive central banks to raise interest rates.

Interest rate increases typically reduce the appeal of gold, as the precious metal generates no yield.

“Gold and silver price movements appear lacklustre at present, but perhaps that is what is felt after some epic movements over the past few months,” Norman said, citing CNBC on Thursday (12 March 2026).

He added that some institutional investors are becoming cautious about holding physical gold due to high price volatility.