Impact of Iran-Israel-US War Escalation: Gold Prices Likely to Rise
Global gold prices are projected to surge sharply following escalation of conflict between Iran, Israel, and the United States. Commodity market analyst Ibrahim Assuaibi forecasts the price increase could occur within a short timeframe as geopolitical tensions in the Middle East intensify.
“The massive attacks by the United States and Israel on Iran, with Trump himself stating that Iran’s religious leader has died, indicate that Middle Eastern tensions will escalate,” he said on Sunday (1 March).
According to him, Iran’s retaliatory actions against Israeli territory and US military bases in the region increase the likelihood of prolonged conflict, both in the short and medium term.
“The war will likely continue to erupt in both the short and medium term,” he added.
This situation is expected to drive global investors to seek safe-haven assets such as gold. Ibrahim estimates that gold prices could experience a gap up during morning trading.
“It is quite likely that in tomorrow’s morning trading session, perhaps around 6am, a gap up will occur, likely jumping to US$5,440 per troy ounce. I believe that within two days, US$5,500 per troy ounce could be reached within hours,” he said.
He added that the rise in global gold prices will almost certainly be accompanied by rupiah weakness, thereby strengthening the increase in precious metals prices domestically.
“For example, precious metals could return to around Rp3.3 million to Rp3.4 million levels,” he said.
The Iranian government has officially established interim leadership authority following the death of Supreme Leader Ayatollah Khamenei in attacks by the United States and Israel. President Russia Vladimir Putin has broken his silence on the escalating tensions enveloping the Middle East region. The Iranian government claims to possess evidence of foreign involvement in mobilising demonstrations that have resulted in riots across various regions. Through a telephone call on Friday (16 January) local time, Iranian President Masoud Pezeshkian expressed gratitude for Russia’s political stance, which he viewed as defending Iran’s sovereignty. FIFA has stated it will continue to monitor developments in Iran following military actions by the United States. Indonesia has expressed readiness to mediate dialogue between the United States and Iran to ease sharply escalating tensions in the Middle East. President Prabowo Subianto stated his readiness to travel to Tehran to mediate the Iran-US conflict. Military operations targeting civilian locations and vital infrastructure in Tehran are believed to have placed Iran’s Supreme Leader, Ayatollah Ali Khamenei, as the primary target.