Israel and US Strike Iran: What Is the Impact on Gold Prices?
Israel and the United States launched strikes against Iran on Saturday, 28 February 2026. The Fars News Agency reported that several missiles struck the University Road area and Jomhouri district in the Iranian capital, Tehran. As of the time this article was published, there were no official reports regarding casualties or total material losses from the missile strikes in the densely populated areas.
How has the strike impacted gold price movements? Looking at trading through Friday, 27 February 2026, gold prices remained relatively stable and continued their seventh consecutive month of gains. Uncertainty surrounding US import tariff policy and tensions between the United States and Iran have driven demand for gold as a safe-haven asset.
Spot gold prices fell marginally by 0.1 per cent to $5,181.18 per ounce at 08:37 GMT. Throughout February, the precious metal rose 6.5 per cent, bringing total gains over the past seven months to 58 per cent.
US gold futures contracts for April delivery rose 0.1 per cent to $5,198.10 per ounce.
Yields on 10-year US Treasury bonds fell to their lowest level in three months, thereby reducing the opportunity cost of holding gold, which does not generate yield.
“There are two things supporting gold. First is the tariff uncertainty currently in the market, and on the other hand the Iran-US situation,” said ANZ analyst Soni Kumari.
The US and Iran held indirect talks in Geneva on Thursday regarding the long-running nuclear dispute. An Omani mediator stated that both sides recorded progress and planned to continue negotiations at the technical level the following week in Vienna.
“The latest round of talks has not produced clear conclusions, so geopolitical risk remains but has not escalated. This keeps gold prices elevated, although it is not yet strong enough to form a sustained bullish trend,” said XS.com Senior Market Analyst Linh Tran.
The US began implementing temporary global import tariffs of 10 per cent on Tuesday. However, these tariffs will rise to 15 per cent for several countries, according to US Trade Representative Jamieson Greer.
On the data front, the number of Americans filing new unemployment insurance claims rose slightly last week, whilst the unemployment rate remained stable in February.
For other precious metals, spot silver prices rose 1.7 per cent to $89.87 per ounce, heading towards a monthly gain of 6.2 per cent.
Spot platinum prices surged 4.1 per cent to $2,365.33 per ounce, the highest level in four weeks, whilst palladium rose 2.1 per cent to $1,821.28 per ounce.