PRECIOUS-Gold jumps more than 2% as US-Israel strikes on Iran spark safe-haven demand
By Noel John
March 2 (Reuters) - Gold prices rose more than 2% on Monday, as U.S.-Israel strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei over the weekend stoked fears of a wider conflict and added to global economic uncertainty, triggering a rush to safe havens.
Spot gold XAU= gained 2.3% to $5,395.99 an ounce as of 0914 GMT, after hitting a more than four-week high earlier in the session. The metal hit a record high of $5,594.82 on January 29.
U.S. gold futures GCcv1 rose 3.1% to $5,411.40 per ounce.
"What we're seeing is an increase in safe-haven assets, which is reflected in the gains in gold and also reflected in the losses of risk related assets, such as stocks," said ActivTrades analyst Ricardo Evangelista.
Global shares slid on the day, as the military conflict in the Middle East looked set to last for weeks, threatening to upend a global economic recovery and perhaps reignite inflation. MKTS/GLOB
Following the U.S.-Israel attack, Iran struck back at Gulf cities, disrupting regional air travel and halting the passage of oil and product tankers through the key Strait of Hormuz.
Israel expanded its assault on Monday to include attacks on Iran-backed Hezbollah militants in Lebanon.
Bullion has hit successive record highs this year due to heightened global political and economic uncertainties.
The latest rally builds on a 64% surge in 2025, driven by strong central bank buying, robust inflows into exchange-traded funds and expectations of U.S. monetary policy easing.
"The situation remains highly uncertain and the escalation further fuels the bullish mood in the gold and silver markets, providing support to prices and stability to a portfolio at a time of heightened volatility in financial markets," said Julius Baer analyst Carsten Menke.
Investors will also be watching a slate of U.S. labour data this week, including the ADP employment report, weekly jobless claims and the non-farm payrolls report.
Spot silver XAG= added 1.4% to $95.17 per ounce, after touching its highest since January 30.
Spot platinum XPT= fell 0.3% at $2,357.05 per ounce, while palladium XPD= advanced 1.7% to $1,815.89.
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