By BullScreen Editorial Team 
Gold prices started March with a sharp rally after fresh military strikes in Iran triggered global market anxiety. Investors rushed to safe assets as tensions in the Middle East intensified, pushing bullion prices to their highest level in more than four weeks.
Spot gold climbed 1.72% to $5,368.09 per ounce, while US gold futures jumped even higher by 2.58% to $5,382.60 per ounce. The surge followed coordinated strikes by the US and Israel that reportedly killed Iran’s Supreme Leader, Ayatollah Ali Khamenei. In response, Iran launched missile attacks, escalating fears of a broader regional conflict.
Gold is traditionally seen as a safe-haven asset during times of crisis. When geopolitical risks rise, investors move money out of equities and into assets like gold to protect wealth.
Market analysts say this conflict carries a higher risk of prolonged escalation compared to previous flare-ups. If tensions continue, volatility across global markets could remain elevated, which generally supports gold prices.
The metal has already been on a strong upward trend in 2025, gaining nearly 64% this year. Key drivers include:
- Strong buying by central banks
- Heavy inflows into gold exchange-traded funds (ETFs)
- Expectations of US interest rate cuts
- Persistent global economic uncertainty
Major global banks have also turned more bullish. Analysts at JP Morgan and Bank of America believe gold could approach the $6,000 mark. JP Morgan has projected prices may even touch $6,300 per ounce by the end of 2026 if demand from central banks and investors remains strong.
Adding to concerns, recent US economic data showed higher-than-expected producer prices in January, signaling possible inflation pressures ahead. Investors are now closely watching US jobs data, including the ADP employment report and non-farm payroll numbers, for clues about future Federal Reserve policy.
The rally wasn’t limited to gold:
- Spot silver rose 1.68% to $95.35 per ounce
- Platinum gained 0.74% to $2,382.15 per ounce
- Palladium edged up 0.25% to $1,790.60 per ounce
The broader move highlights growing demand for safe and alternative assets amid uncertainty.
The geopolitical crisis could soon impact India’s bullion and diamond markets.
Dubai plays a critical role in India’s gold and rough diamond imports. It is the country’s second-largest supplier of gold bars and the biggest source of rough diamonds used by India’s large polishing industry.
India imports around 800–850 tonnes of gold annually, and nearly 50–60% of that flows through Dubai. If airspace disruptions and supply chain delays continue, domestic traders may face shortages.
The diamond sector could feel the strain even more. India is one of the world’s largest diamond polishing hubs, and a large share of rough stones comes through Gulf trade routes. Any prolonged disruption may lead to:
- Delays in manufacturing
- Higher input costs
- Possible increase in gold and polished diamond prices
For Indian consumers, this could mean higher jewellery prices in the coming weeks if tensions remain unresolved.
Markets will closely track:
- Further military developments in the Middle East
- US economic data and inflation trends
- Central bank policy signals
- Movement in crude oil prices
If geopolitical risks deepen, gold may continue to find strong support. However, any sign of de-escalation could trigger short-term profit booking.
For now, uncertainty remains the biggest driver and in such times, gold is once again proving why it is considered a global safety net.