Gold Rises As Middle East Conflict Intensifies

SPDR Gold Trust (NYSE:GLD) is trading higher on Monday as gold prices jumped more than 2% earlier in the session, driven by fears that the Middle East conflict could drag on following U.S. and Israeli strikes against Iran.

• SPDR Gold Shares stock is trading at elevated levels. What’s the outlook for GLD shares?

Gold Sees Early Surge On Geopolitical Tensions

Gold steadied after its early surge due to what seems to be profit‑taking, but safe‑haven demand remains strong. The move reflected the same theme dominating global markets: investors are seeking safety as geopolitical tensions escalate. Reuters reported that spot gold briefly hit $5,418.50 before easing back to around $5,285 at last check, while U.S. gold futures were still up about 1%.

David Meger of High Ridge Futures said traders are trying to gauge whether more attacks are coming, adding that this uncertainty is likely to keep supporting gold prices.

The U.S.–Israeli air campaign against Iran widened on Monday, spilling into Lebanon as Israel responded to Hezbollah strikes. Iran launched missiles and drones at Israel, Gulf states and even a British base in Cyprus.

President Donald Trump told CNN the U.S. military is "knocking the crap" out of Iran and warned that a "big wave" of action is still ahead. Meanwhile, key regional infrastructure has been hit: Qatar Energy halted LNG production after attacks on its facilities, and Saudi Aramco shut its Ras Tanura refinery following a drone strike. Thick smoke was also seen near the U.S. Embassy in Kuwait during a new round of Iranian attacks.

Gold's Rally Builds On A Strong Year

Gold has been on a remarkable run, repeatedly hitting record highs and climbing nearly 23% so far this year. That surge builds on last year's huge 64% rally, fueled by strong central‑bank buying, heavy ETF inflows and growing expectations that U.S. monetary policy will turn more accommodative.

Analysts note that geopolitical fragmentation has pushed BRIC central banks to reduce exposure to the U.S. dollar and increase gold holdings — a trend expected to continue. Physical investment demand is also projected to remain a major driver.

According to metals industry sources, physical gold flows in and out of Dubai — a major global bullion hub — are likely to be severely restricted in the coming days as airlines cancel flights due to the conflict, possibly tightening supply and add further support to prices.

GLD Price Action: SPDR Gold shares were up 0.71% at $487.18 at the time of publication on Monday. The stock is approaching its 52-week high of $509.70, according to Benzinga Pro.

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