Gold edges toward record high as Middle East war drives haven bids

Gold rose toward a record high as an escalating conflict between Israel and Iran drove investors toward haven assets.

The precious metal climbed as much as 0.6% in Asia to near $3,450 an ounce, about $50 short of an all-time peak set in April. The two countries hit each other with barrages of missile and drones over the weekend, with the hostilities pushing up energy prices on the threat to energy infrastructure and transport in the region.

The sudden upsurge of geopolitical risk has added more impetus to a rally that’s primarily been driven by the threat to global economic growth from President Donald Trump’s aggressive tariff agenda. Gold has rallied more than 30% in 2025, with central banks seeking to diversify away from the dollar being another significant driver.

“Prices are still very close to the record, and given the geopolitical situation any further escalation will push them higher,” said John Feeney, an analyst at Guardian Gold Australia. “Gold has performed very well as a haven recently, and it seems a lot of investors are moving funds out of US bonds and into the metal over the longer term.”