Gold prices rose Monday, opening higher after U.S. and Israeli strikes on Iran. The precious metal reached $5,390 at market open. Investors sought gold as a safe-haven asset due to increased geopolitical risk and global uncertainty.
Escalation continued with missile strikes from Iran. This has raised fears of a longer conflict, keeping gold prices elevated. U.S. producer prices also rose higher than expected in January 2026, adding inflation support.
Producer prices increased 0.5% month-over-month. Service prices saw a 0.8% rise, the largest since July. Higher inflation typically lowers real yields, making gold more appealing. Traders will watch U.S. labor market data, as weak figures could strengthen rate cut expectations and boost gold demand.
Silver prices often follow gold during safe-haven rallies. The metal formed a strong base above $72 after a rebound on February 17, 2026. Silver’s recent breakout above $92 suggests a move towards $120. A break past $120 could push prices to $150.
Gold broke above $5,090 and now targets $5,600 resistance. Escalating geopolitical risk could push gold above $5,600 towards $6,500. Both gold and silver remain supported by rising tensions, inflation signals, and expectations of easier monetary policy.