Gold Prices Surge Over 2% Amid Rising Global Tensions: What Investors and Businesses Need to Know
Gold prices continued their upward trend on Wednesday, fueled by safe-haven demand amid escalating geopolitical tensions between the U.S. and Iran. This followed a significant rally in the previous session, which marked gold’s strongest daily gain since 2008.
As of 03:53 GMT, spot gold surged 2.7% to reach $5,071.79 per ounce, building on Tuesday’s impressive 5.9% increase—the largest one-day rise since November 2008. The precious metal had previously hit a record peak of $5,594.82 last Thursday.
In Oman, gold prices are currently as follows:
– 24k: RO 564.40 per gram
– 22k: RO 60.10 per gram
– 18k: RO 47.50 per gram
Meanwhile, U.S. gold futures for April delivery rose 3.2% to $5,092.00 per ounce.
Jigar Trivedi, senior research analyst at IndusInd Securities, noted, “Gold has climbed back above the key $5,000 level, as geopolitical tensions have enhanced the metal’s safe-haven appeal following the U.S. military’s downing of an Iranian drone.”
The U.S. military reported that it shot down an Iranian drone on Tuesday after it aggressively approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea, an incident first revealed by Reuters.
Adding to the geopolitical backdrop, nuclear talks between the U.S. and Iran are expected to take place in Oman on Friday, according to Axios reporter Barak Ravid, who cited an Arab source.
On the domestic front, U.S. President Donald Trump signed a spending bill into law on Tuesday, ending a partial government shutdown that had delayed key labor reports scheduled for this week.
Market participants anticipate at least two Federal Reserve interest rate cuts in 2026 and are awaiting the ADP private payroll data later Wednesday for additional insights into the Fed’s policy direction. Historically, gold tends to perform better in low-interest-rate environments due to its non-yielding nature.
Looking ahead, Trivedi projected, “Gold prices may reach $5,100 in the near term, with expectations to hit $5,600 by the end of April or the first half of the year, and continue rising towards our year-end target of $6,000 per ounce.”
Reuters technical analyst Wang Tao added that the current price surge is likely to be sharp, potentially climbing within the range of $4,950 to $5,198.
Other precious metals also saw gains on Wednesday:
– Spot silver rose 3.2% to $87.84 per ounce, after reaching a record $121.64 on Thursday.
– Spot platinum increased 2.9% to $2,273.70 per ounce, following its all-time high of $2,918.80 on January 26.
– Palladium gained 3% to $1,784.67 per ounce.
These developments reflect heightened investor interest in precious metals amid ongoing geopolitical and economic uncertainties.
Special Analysis by Omanet | Navigate Oman’s Market
The surge in gold prices, driven by escalating U.S.-Iran geopolitical tensions, highlights Oman’s strategic position as a safe-haven hub for precious metals investment amid regional uncertainty. Businesses in Oman, especially those in the gold trade and financial sectors, should capitalize on increased demand and price volatility, while investors must consider gold and related commodities as hedge assets against geopolitical risk and potential market fluctuations in 2026. Keeping an eye on upcoming diplomatic developments and Fed policy shifts will be crucial for timing investment moves effectively.
