Gold Holds Gain as Mideast Tensions Escalate

2026-03-03 00:29 By Judith Sib-at 1 min. read

Gold hovered near $5,320 per ounce on Tuesday, holding onto most of the previous sessions’ gains, supported by strong demand for safe-haven assets amid increasing tensions in the Middle East.

On Monday, President Trump warned that the US would continue attacking Iran until it was no longer capable of posing a threat, signaling that the conflict could last for a month or “far longer.”  Meanwhile, Iran declared the Strait of Hormuz closed and threatened to target any vessels attempting to transit the critical energy corridor.

The escalation in conflict drove oil prices sharply higher, intensifying concerns over inflationary pressures in the US.

This, in turn, triggered a sell-off in Treasuries and reduced bets of further interest rate cuts by the Federal Reserve.

Markets now see the next Fed rate cut likely around September, later than previously anticipated.



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