- March 2, 2026
- Posted by: EWGFX
- Category: news
According to Bloomberg, the conflict widened after Tehran retaliated with waves of missiles aimed at multiple targets. The strikes hit Israel along with American military bases in Qatar, the UAE, Kuwait, and Bahrain.
Iran’s supreme leader, Ayatollah Ali Khamenei, was reportedly killed on the first day of strikes. The development added yet another layer of uncertainty to an already volatile geopolitical landscape.
Commodity Markets in Turmoil
The effective shutdown of the Strait of Hormuz is arguably the biggest wildcard for global energy markets right now. Oil prices surged by the most in four years as the world’s most critical crude shipping lane was thrown into chaos.
Ahmad Assiri, a strategist at Pepperstone Group, called gold’s move higher an early sign of investors hunting for safe-haven assets. The shift reflects growing unease over the deepening regional instability.
What’s particularly striking is that hard assets like gold and oil kept climbing even as the US dollar strengthened. The Bloomberg Dollar Spot Index rose 0.4% early on Monday (03/02).
Hong Hao, chief investment officer at Lotus Asset Management, weighed in on the unusual dynamic. He noted that precious metals and commodities are proving to be the real hard currency during this extraordinary period.
A Rally That Was Already Building
Even before the war with Iran kicked off, gold was already on a tear. Bullion notched its seventh consecutive monthly gain in February, marking the longest winning streak since 1973.
Year-to-date, gold has rallied roughly 25% despite a sharp pullback from its record high above $5,595. The rally has been fueled by heavy central bank buying and a broader investor pivot away from sovereign bonds and currencies.
President Trump’s aggressive foreign policy moves have only added fuel to the safe-haven bid. The seizure of former Venezuelan President Nicolás Maduro and threats to annex Greenland have cranked up geopolitical tensions across the board.