Gold prices jumped back above $5,400 an ounce in early trading on Monday following US and Israeli missile strikes on Iran, sparking fresh debate over whether the precious metal could hit $6,000 in the coming weeks. The moves reflect a surge in demand for safe-haven assets as geopolitical risks in the Middle East escalate.
The strikes reportedly killed Iran’s Supreme Leader Ayatollah Ali Khamenei and several senior commanders, prompting retaliatory attacks on US allies in the Gulf. The situation has heightened concerns around the Strait of Hormuz, a key artery for global oil supplies, pushing both oil and precious metals higher. Silver also rebounded, climbing toward $100 per ounce after falling sharply earlier in the year.
Market analysts described the activity as a “classic risk-off scenario,” with investors flocking to traditional stores of value amid fears of broader regional escalation and potential energy supply disruptions. Cameron Parry, founder and CEO of TallyMoney, said the moves were consistent with previous geopolitical crises.
“Both the oil and gold price were up Monday morning, as the Strait of Hormuz and safe-haven assets became the point of focus for markets,” Parry said. “Geopolitical crises like the one unfolding currently will invariably apply upward pressure on the gold price. That demand could now spike further as nations and individuals seek the safety of the world’s ultimate store of value.”
Riz Malik, director at R3 Wealth, said the scale of further gains would depend on how long the conflict lasts and the level of Iranian retaliation. “Once again global instability has been pushed to Defcon 4, and that only means one thing for precious metals: their price is set to go up,” he said.
Not all analysts, however, expect gold to hit $6,000 in the near term. Tony Redondo, founder of Cosmos Currency Exchange, noted that while $6,000 is possible in the medium term, it would require a prolonged conflict or disruption to the Strait of Hormuz. “Even before Saturday’s military operations in Iran, gold had reached $5,300, but a jump to $6,000 by next week would require a 15 percent surge, usually reserved for systemic shocks,” he said. Redondo added that silver’s supply constraints could push it toward $120 in the months ahead.
Anita Wright, chartered financial planner at Ribble Wealth Management, said broader macroeconomic pressures remain key drivers of gold. “Gold does not move to $6,000 because of a single weekend’s events. It moves there if monetary and financial conditions make it necessary,” she said, citing US refinancing needs, rising long-dated bond yields, and stretched equity valuations.
Nouran Moustafa, principal at Roxton Wealth, urged caution. “Gold can act as portfolio insurance, but chasing rapid spikes rarely ends well. Sensible allocation and risk management matter more than reacting emotionally to breaking news,” she said.
With Middle East tensions showing no sign of easing, gold and silver are likely to remain volatile, with prices hinging on whether the conflict remains contained or escalates further, threatening energy markets and global growth.
