Why Gold Isn’t Rising During the Iran War

Gold is widely considered a safe-haven asset that tends to gain value during times of conflict and economic uncertainty.

However, during the ongoing war involving Iran, gold prices have not surged as expected.

While the metal reached a record high of about $5,417 per ounce in January 2026, prices have since stabilized rather than continuing to rise after the conflict began on February 28.

Several factors help explain this trend. A stronger US dollar has made gold more expensive for buyers using other currencies, which can reduce global demand. At the same time, rising oil prices are contributing to higher inflation, making it less likely that central banks will cut interest rates in the near term.

Higher interest rates can make other investments, such as bonds, more attractive compared to gold, which does not generate income.

As a result, investors may be less inclined to increase their gold holdings despite ongoing geopolitical tensions.

The current price stability suggests that while gold remains an important asset during uncertain times, its performance is also shaped by currency movements, inflation, and expectations around monetary policy