Gold rises as Middle East conflict escalates, dollar rally pauses

Gold prices rose on Wednesday as the escalating conflict in the Middle East attracted safe‑haven bids, while a pause in the US dollar’s rally also lent support.

Spot gold was up 0.7% at USD 5,120.71 per ounce by 1831 GMT, after falling more than 4% on Tuesday.

US gold futures for April delivery settled 0.2% higher at USD 5,134.70.

“The dollar has seen a pullback, which is providing some support. Overall, the macro-fundamental factors remain broadly supportive of gold. Certainly, as long as the war with Iran is ongoing, that’s going to remain supportive as well,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

“There is risk that volatility continues. But I remain bullish and think we will see new all-time highs.”

The dollar eased after sharp gains on Tuesday. A softer dollar makes greenback-priced gold less expensive for holders of other currencies.

The US–Iran war widened sharply after a US submarine sank an Iranian warship off Sri Lanka, killing at least 80 people, and NATO air defences destroyed an Iranian ballistic missile fired towards Turkey.

Gold, a non-yielding asset that is considered a hedge against uncertainty and inflation, tends to be preferred during periods of low interest rates.

The ADP’s national employment report showed US private payrolls increased more than expected in February, though data for the prior month was revised sharply lower.

Investors are turning their attention to the release on Friday of the US employment report for February. Nonfarm payrolls likely increased by 59,000 jobs last month after accelerating by 130,000 in January, a Reuters survey of economists predicted.

Spot silver firmed 1.3% to USD 83.07 per ounce after falling more than 8% in the previous session.

Spot platinum added 2.8% to USD 2,141.71 while palladium rose 1.2% to USD 1,667.51.

The World Platinum Investment Council said the global platinum market is heading for its fourth consecutive annual deficit in 2026.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Paul Simao and Krishna Chandra Eluri)