US-Iran Tensions Persist, Gold and Silver Supported by Safe-Haven Buying

TradingKey - As the Asian session opened on March 3, spot gold ( XAUUSD ), silver ( XAGUSD) prices both edged higher.

Behind this rally is the continuous escalation of airstrikes by the U.S. and Israel against Iran, with no signs of a ceasefire. This situation has significantly heightened market concerns over the spread of geopolitical conflict and global economic uncertainty, prompting safe-haven capital to pour into the precious metals market.

On March 2 local time, U.S. President Trump stated publicly that it is absolutely unacceptable for Iran to possess nuclear weapons and that the U.S. will continue to conduct large-scale military operations within Iranian territory. The operational objectives of the U.S. and Israel are clear: to completely destroy Iran's missile research, development, and launch capabilities, thereby preventing Iran from acquiring nuclear weapons at the source.

Trump also revealed that military operations against Iran are expected to last four to five weeks, though the U.S. is prepared for a duration that could "far exceed expectations." He further claimed that the U.S. objective is to completely destroy the Iranian Navy and that 10 Iranian vessels have already been sunk.

Analysts at JPMorgan Chase noted that following the U.S. and Israeli attacks on Iran and subsequent regional retaliations, the "risk premium" for gold prices is expected to shift upward by 5% to 10% in the short term. However, the analysts also emphasized that such surges in precious metal prices triggered by geopolitical conflicts "tend to be aggressive but are difficult to sustain over the long term."

The rally in gold and silver could reverse at any time if signs of de-escalation emerge or if a decline in global equity markets prompts investors to liquidate precious metal assets to cover losses and raise cash.

Nevertheless, JPMorgan remains bullish on gold prices in the long run. Its report indicated that despite short-term price fluctuations, demand from global central banks and investor allocations will collectively drive gold prices to $6,300 per ounce by the end of 2026.