Gold Prices Hit Record High Again! Iran-US-Israel Conflict Drives Safe Haven Demand
Gold prices surged sharply in early March following major military strikes by the United States and Israel on Iran that resulted in the death of Tehran’s Supreme Leader, Ayatollah Ali Khamenei. The escalation triggered a fresh wave of global uncertainty and prompted investors to rush towards safe-haven assets.
At 00:10 GMT, spot gold prices jumped 1.72 per cent to US$5,368.09 per ounce, or approximately Rp90.18 million (at the rate of Rp16,800), marking the highest level in more than four weeks. Meanwhile, US gold futures contracts climbed even higher, rising 2.58 per cent to US$5,382.60 per ounce or equivalent to Rp90.43 million.
The strikes triggered further military action. Israel launched additional attacks on Tehran on Sunday, which Iran countered with a barrage of missiles. This escalation has widened instability in the Middle East and heightened concerns across global markets.
Kyle Rodda, senior financial market analyst at Capital.com, assessed that the current conflict dynamics pose greater risks compared to previous escalations. “Unlike previous escalations in this conflict, both sides now have sufficiently strong incentives to continue intensifying attacks, risking the creation of a chaotic, highly uncertain, and highly volatile environment—not merely for a few days. Under such conditions, gold dynamics become quite positive,” he stated, as cited by Times of India on Monday, 2 March 2026.
Gold, long viewed as a safe-haven asset, has set numerous records throughout the year. The latest rally adds to approximately 64 per cent gains throughout 2025, driven by central bank purchases, substantial inflows into exchange-traded fund (ETF) products, and expectations of US monetary policy easing.
Several global banks have strengthened their gold price forecasts. JPMorgan and Bank of America have suggested gold prices could approach US$6,000 per ounce or approximately Rp100.8 million.
JPMorgan projects that combined central bank demand and investor purchases could push prices to US$6,300 per ounce, or approximately Rp105.84 million by the end of 2026.
US economic data has further heightened market caution. US producer prices in January rose higher than expected, indicating inflationary pressures could resurface in coming months. Investors are now awaiting important employment reports, including ADP data, weekly jobless claims, and the non-farm payrolls report.