Gold prices soar as Middle East tension builds

Gold prices soar as Middle East tension builds – experts explain why gold is a ‘safe haven’ during global conflict

Overnight, gold prices surged to more than £2,500 per ounce as Israel launched air strikes on Iran; so why do gold prices soar during geopolitical events?

Rick Kanda, Managing Director at The Gold Bullion Company, has shared his expert insight into why gold increases in value during global conflict:

“People across the world have woken to worrying news coming out of the Middle East, as Israel has launched a military attack on Iran. In most cases, geopolitical events have damaging impacts on stocks and investments; however, this isn’t the case for gold.”

“Historically, gold has a proven track record of performing well during economic uncertainty and global conflicts due to its intrinsic value, which is why many investors see gold as a safe haven. During times of conflict, investors steer away from investing in assets such as stocks and bonds, as geopolitical events often threaten the infrastructures supporting these assets.”

“Global geopolitical tensions and trade uncertainty have put the price of gold in a strong position over recent years, with many experts believing there has never been a better time to invest in the metal, but any investment choice isn’t to be made lightly”

“Gold investment should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time. Gold should always be seen as a long-term investment strategy. The time is right if you have the funds, you are in a financially stable position, and you’re looking for an investment that will store value long-term without thought towards any short-term price fluctuations.”

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Investors keep seeking the safety of gold amid persistent tariff uncertainty and rising geopolitical tensions. The US President’s threat to impose unilateral tariffs in the coming weeks has kept trade anxiety elevated. Meanwhile, his lower confidence in a nuclear deal with Iran and a drawdown of US personnel in the Middle East have added fuel to geopolitical fears. Weakness in the US dollar and sustained central bank buying are amplifying gold’s strength, keeping it on course for fresh all-time highs.

“Still, the US and Iran are expected to resume talks over the weekend, while US Treasury Secretary Bessent has hinted at a delay in tariffs on key negotiating partners. Such developments may temper gold’s safe-haven appeal and prompt pullbacks, but the broader risk backdrop continues to favour the upside.”

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“Silver shows fatigue after reaching thirteen-year highs, leaving it vulnerable to deeper pullbacks, as concerns over the global economy linger due to ongoing tariff uncertainty. However, the precious metal retains its bullish momentum and remains well positioned for further gains.

“In addition to its safe-haven appeal in risk-off environments, silver is increasingly benefiting from structural demand tied to the AI boom and the clean energy transition. With Big Tech continuing to ramp up investment in AI infrastructure, and the move away from fossil fuels progressing despite some bumps, silver demand looks set to persist, supporting prices.”