{"id":45532,"date":"2026-03-02T12:14:36","date_gmt":"2026-03-02T04:14:36","guid":{"rendered":"https:\/\/www.phillipnova.com.sg\/?post_type=market_trends&p=45532"},"modified":"2026-03-04T10:58:34","modified_gmt":"2026-03-04T02:58:34","slug":"middle-east-tensions-impact-to-gold-and-crude-oil","status":"publish","type":"market_trends","link":"https:\/\/www.phillipnova.com.sg\/cn\/market_trends\/middle-east-tensions-impact-to-gold-and-crude-oil\/","title":{"rendered":"Middle East Tensions: Impact to Gold and Crude Oil"},"content":{"rendered":"
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Escalating tensions in the Middle East have intensified following a joint military operation involving the United States and Israel targeting sites in Iran. The stated objective of the operation was to weaken Iran\u2019s leadership structure and constrain its nuclear capabilities. Reports indicate that several senior Iranian officials, including Iran\u2019s supreme leader, Ali Khamenei, were killed during the strikes.<\/p>\n

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In response, Iran launched retaliatory missile attacks on US-linked military installations across parts of the Middle East. The exchange of strikes has heightened regional instability and raised concerns about the risk of broader spillover effects across neighbouring countries.<\/p>\n

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The humanitarian toll and geopolitical consequences of the conflict remain deeply concerning, and the situation continues to evolve rapidly.<\/p>\n

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Financial markets initially responded with a classic risk-off shift, with investors moving toward traditional safe-haven assets such as gold. However, despite the seriousness of developments, broader market reactions have so far been measured. Investors appear to be assessing whether the conflict remains regionally contained or risks expanding further.<\/p>\n

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Missile exchanges have continued, and several Gulf nations remain exposed due to geographic proximity and strategic ties. This has kept global investors cautious, though market pricing currently suggests expectations of contained – rather than systemic – disruption.<\/p>\n

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Impact on Gold<\/h3>\n

Gold prices have remained supported but relatively restrained despite heightened geopolitical tensions. The initial military escalation prompted a familiar defensive response, with investors increasing allocations to safe-haven assets amid uncertainty.<\/p>\n

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As of 10:25 am Singapore time, COMEX gold futures were trading at $5,346 per ounce, up 1.87%<\/strong>.<\/p>\n

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Even so, price gains have been more moderate than the scale of geopolitical headlines might typically imply. Markets appear to be weighing multiple factors – including the possibility of diplomatic engagement, shifting leadership dynamics, and broader macroeconomic conditions – rather than pricing in an extended period of escalating conflict.<\/p>\n

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From a macro perspective, gold continues to benefit from supportive structural drivers, including falling real yields and ongoing global growth concerns. However, these tailwinds are no longer translating into strong upside momentum. Volatility is likely to remain elevated until there is greater clarity on the geopolitical outlook, but buying conviction appears to be moderating at higher price levels.<\/p>\n

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Technically, gold has struggled to sustain moves above the $5,400 level. Repeated failure to hold above resistance suggests that while safe-haven demand remains present, momentum is softening.<\/strong> For now, gold continues to carry a geopolitical risk premium, but price action indicates a shift from fear-driven rallies toward consolidation.<\/p>\n

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In summary, geopolitical risks continue to support gold, but the market appears to be transitioning into a more cautious, range-bound phase while awaiting clearer direction.<\/strong><\/p>\n

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Crude Oil<\/h3>\n

Crude oil prices reacted sharply to the escalation, opening higher in early Asian trading as supply risks came into focus. Brent crude briefly moved above $80 per barrel<\/strong>, levels not seen since January 2025, before partially retracing gains.<\/p>\n

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As of 9:35 am Singapore time:<\/p>\n