Global Gold Prices Rise, Driven by US-Iran Tensions

NEW YORK - Global gold prices rose at the end of trading on Monday (30/3/2026) local time, or Tuesday (31/3/2026) morning Western Indonesia Time, driven by increasing demand for safe-haven assets.

Nevertheless, gold prices are expected to fall on a monthly basis as the conflict in the Middle East heightens concerns over inflation and higher global interest rates.

Citing Reuters, spot gold prices rose 0.6 per cent to $4,518.57 per ounce, after hitting the lowest level since November 2025 at the start of the previous week.

Kitco Metals senior analyst Jim Wyckoff stated that the ongoing conflict between the United States (US) and Israel against Iran is the main driver of the short-term rise in gold prices.

“The war is still raging fiercely with no resolution in sight, pushing gold prices higher due to safe-haven demand. In the near term, market focus will be on the war, crude oil prices, bond yields, and the US dollar index,” he said.

On the other hand, US President Donald Trump warned that Iran’s energy facilities and oil fields would be destroyed if the country does not open the Strait of Hormuz.

Gold prices have fallen more than 14 per cent throughout March 2026.

This decline positions gold on track for its worst monthly performance since 2008.

The surge in energy prices due to the conflict has raised inflation concerns and prompted market participants to reassess expectations for interest rates.

However, gold does not offer interest yields, making it less attractive when interest rates are high.

Federal Reserve Chairman Jerome Powell stated that the US central bank is able to wait and see the impact of the Middle East war on the economy and inflation.

This month, the Fed has maintained its benchmark interest rate in the range of 3.50 per cent to 3.75 per cent.