Gold Prices Fail to Surge Amid Iran Conflict: What's Behind It?

Global gold prices have yet to show significant gains despite continuing conflict in the Middle East. Typically, geopolitical tensions drive investors to seek safe-haven assets such as gold.

Gold prices did strengthen following US and Israeli strikes against Iran on 28 February 2026, rising from $5,296 to $5,423 per troy ounce. This movement aligned with the common view that geopolitical turmoil prompts investors to seek safer assets.

This week, as the conflict intensified, gold prices instead moved within a narrow range between $5,050 and $5,200 per troy ounce. Spot market gold was last recorded at around $5,175 per troy ounce.

According to CNBC on Saturday (14 March 2026), Metals Daily CEO Ross Norman outlined several factors explaining why gold has failed to gain momentum. One key factor is the strengthening of the US dollar and rising yields on US Treasury bonds.

Higher interest rates typically increase the appeal of yield-bearing assets, such as government bonds, compared to non-yielding precious metals like gold.

“Gold and silver price movements appear lacklustre at present, but that may be understandable following the large surge over recent months,” Norman said.

He added that some institutional investors have begun feeling anxious about holding physical gold bars due to relatively high recent volatility. This situation could trigger liquidity pressures, leading investors to sell various assets, including gold.

“If a liquidity crunch occurs, everything could be sold until investors regain understanding of the situation and determine which assets are appropriate,” Halawi stated.