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Gold price hit a record high on March 3, 2026. Investors flocked to safe-haven assets amid the war between the United States, Israel, and Iran. Spot gold climbed to an intraday high of $5,417 per ounce before settling in the $5,350-$5,380 range according to Moneycontrol data. Rising fears of oil supply disruptions and a broader economic shock also increased demand for gold.
The rally followed a major escalation in hostilities in the Middle East. A joint US-Israeli military operation launched on February 28 targeted Iranian military infrastructure and senior leadership in Tehran. The strike killed Iran’s Supreme Leader, Ali Khamenei. In response, Iran launched ballistic missile attacks aimed at Israel and US military bases in the Gulf region, including in Qatar, Kuwait, and the United Arab Emirates.
US President Donald Trump said the offensive could continue for four to five weeks. His statements raised concerns that tensions may remain high in the near term. The growing uncertainty pushed investors to sell of quities and other risky assets in favour of gold as it is widely considered a store of value.
The surge in gold prices gained further support after Iran’s Revolutionary Guard Corps declared the Strait of Hormuz closed to shipping. The waterway carries around 20 % of the world’s daily oil supply. Ship-tracking data showed a sharp fall in traffic, with many tankers reportedly damaged and many vessels stranded.
Oil prices surged 13 % following the announcement. Analysts warned that a prolonged shutdown could lead to a huge supply crisis. Concerns over higher fuel costs and global inflation added to the rush toward gold.
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Strong central bank demand has also supported gold’s record run. China’s central bank has purchased gold for 15 consecutive months through January. Over the past five years, China, Poland, Turkey, and India have together added more than 1,100 tonnes to their reserves.
Analysts expect the buying trend to continue as countries diversify away from dollar-based assets. Major global banks are bullish on the gold price. JP Morgan has a year-end forecast of $6,300 per ounce.
Meanwhile, other analysts say gold could move toward $6,000 or higher if oil disruptions persist. With the Strait of Hormuz effectively shut and no diplomatic solution in sight, the market volatility may continue in the short term. Investors should keep a close eye on geopolitical developments to guage market’s next direction.
