Gold Prices Expected to Rise After Mideast Strikes

Gold prices are expected to rise as investors seek safe-haven assets following US and Israeli strikes on Iran. The intensified uncertainty across global markets is driving demand for bullion.

Analysts predict a knee-jerk spike in commodity markets, including gold and oil. Edward Meir, an analyst at Marex, suggested gold could open up by about $200 per ounce. Tokenized gold is already trading at a premium, with PAX Gold (PAXG) at $5,344 per ounce, up 2.2% since Friday. Tether Gold (XAUt) climbed to $5,292 per ounce, a 1.2% increase.

Tim Waterer, chief market analyst at KCM Trade, said gold will likely see higher demand when markets open Monday. Concerns about the conflict’s duration, other nations getting involved, and inflation fears are fueling this demand. Fawad Razaqzada, a market analyst, believes gold prices could reach around $5,500, possibly surpassing January’s peak of about $5,600.

Some analysts caution that gold’s initial rally might fade if oil flows are not interrupted. Fawad Razaqzada warned that a rebounding US dollar could cap gold’s gains if crude oil stays sharply higher. Joshua Rotbart, founder of J. Rotbart & Co, said the extent of movement will depend on the conflict’s effect on the energy market.