The United States and Israel launched coordinated military strikes on Iran – Operation Epic Fury – on February 28th, targeting key Iranian officials, military commanders, and facilities.
Bullion.Directory precious metals analysis 02 March, 2026
By Nick Cawley
Contributing analyst at Solomon Global
The strikes, a culmination of weeks of escalating tensions, prompted an immediate Iranian response, with Tehran targeting Israel, Saudi Arabia, the UAE, and a host of other Middle Eastern nations. With neither side showing signs of backing down, the situation in the Middle East looks set to deteriorate further before any resolution emerges.
Oil traffic through the strategically vital Strait of Hormuz faces significant disruption in the coming weeks. Approximately 20 million barrels of crude oil pass daily through the narrow channel separating the Persian Gulf from the Gulf of Oman.
A prolonged closure will deliver a major shock to global energy supplies and send oil, gas prices, and inflation sharply higher.
Gold has responded to the military escalation in the Middle East as a textbook safe-haven asset, extending its multi-month push higher.
The precious metal jumped by around $150/oz. in early trade on Monday and sits at approximately $200/oz. away from a fresh all-time high. The longer-dated chart tells a more compelling story; gold has posted just one minor negative month since January 2025.
Gold Monthly Price Chart
Looking forward, safe-haven demand is expected to provide gold with a strong tailwind and keep pushing the precious metal higher.
Gold investors should be cognisant of energy prices, their effect on inflation and any potential central bank action.
If price pressures increase sharply, any expected rate cuts, primarily in the US, would be pushed back.
According to the latest CME FedWatch data, markets are pricing in just a 43% probability of a 25-basis point rate cut at the Federal Reserve’s June 17th policy meeting.
Gold will remain underpinned for the foreseeable future, and investors should use any downturn as a further opportunity to increase long-term exposure to the precious metal.
Fears that heightened inflation will cap any interest rate cuts need to be balanced out against the strong safe-haven bid driving gold.
New all-time highs are likely over the coming weeks.
Nick Cawley
Nick Cawley, contributing analyst for Solomon Global, has over 20 years of experience trading fixed income products for a range of investment banks and brokers.
His expert market analysis and financial insights are widely published across some of the world’s leading news publications and market platforms including the Dow Jones, the Wall Street Journal and Investing.com.
This article was originally published here
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