Gold prices increased for the fifth consecutive session on Tuesday, as investors turned to safe-haven assets in light of the intensifying air conflict between the U.S. and Israel against Iran. This development has heightened concerns that the situation could evolve into a prolonged regional war, further amplifying uncertainty in the market. Spot gold increased by 1% to $5,377.21 per ounce, as of 0122. In the previous session, bullion reached its peak in over four weeks following the strikes launched by the U.S. and Israel on Iran over the weekend.

Gold futures in the United States for April delivery experienced an increase of 1.5%, reaching a price of $5,391.90.
The dollar remained near a five-week high attained on Monday, bolstered by robust demand and a prudent market outlook. A robust dollar generally increases the cost of dollar-denominated assets, including bullion, for holders of other currencies. However, under crisis conditions, gold functions more as a risk hedge rather than as an alternative currency. According to Iranian media, a high-ranking official from the Islamic Revolutionary Guards announced on Monday that the Strait of Hormuz has been closed, issuing a warning that Iran would target any vessel attempting to navigate through this crucial maritime route.

This represents Iran’s clearest admonition following its announcement to vessels regarding the closure of the export route on Saturday, a decision that poses a risk of constricting a significant portion of global oil supply and potentially driving crude prices upward significantly. U.S. President Donald Trump stated that he directed the attack on Iran to counter what he characterized as imminent threats from Tehran’s nuclear and ballistic missile programs. He committed to continuing the conflict for as long as necessary and cautioned that a “big wave” of further attacks was forthcoming, although he did not provide specific details.

The assault on Iran has plunged the Gulf region into conflict, resulting in numerous civilian casualties in Iran, Israel, and Lebanon, disrupting global air travel, and halting maritime activities in the Strait of Hormuz. Spot silver increased by 1.4% to $90.67 per ounce on Tuesday, following a rise to a level not seen in over four weeks during the prior session. Spot platinum increased by 0.6% to $2,316.50 per ounce, whereas palladium rose by 1.6% to $1,795.08.