On Thursday (March 5) during the Asian trading session, the spot gold price continued its upward trend from the previous day, currently quoted at approximately $5,190 per ounce, with an increase of nearly $50 within the day. The previous day, the price of gold had risen by $52.18, a 1.03% increase, closing at $5,140.92 per ounce, after a drop of more than 4% on Tuesday.
Iran Threatens Israeli Nuclear Facilities, Escalating Geopolitical Risks
The conflict in the Middle East has entered its sixth day, with no sign of easing. An Iranian military official warned on Thursday that if the US and Israel pursue regime change, Iran will target Israel's Dimona nuclear facility. As US and Israeli forces continue to bomb Iran, Iran has launched missiles at multiple countries in the region and blocked the Strait of Hormuz, prompting investors to turn to safe-haven assets.
US and Global Trade Risks Combine
US President Trump expressed full confidence in military actions, with the US Navy sinking an Iranian warship in international waters. Tehran denied contacting Washington for negotiations, calling related reports "outright lies." Meanwhile, US Treasury Secretary Steven Mnuchin announced on Wednesday that Trump plans to raise the broadly applied 10% import tariff to 15%, expected to take effect this week, with the EU potentially exempted. The combination of geopolitical and trade tensions supports precious metal prices.
Weak Dollar and Rising Oil Prices Provide Additional Support
The recent weakening of the dollar provides support for gold. A key indicator measuring the dollar's performance fell about 0.4% over the past two days but is still up nearly 1% for the week. Rising oil prices and stock markets exert pressure on the dollar, making gold cheaper for most buyers. Rhona O'Connell, head of market analysis at StoneX Financial, noted that after investors unwound previously overbought positions, the speculative "upward pressure from above" on gold and silver at the exchange level is now minimal.
Market Data
As of 11:17 Beijing time, spot gold was quoted at $5,190.47 per ounce. The price of gold continues to rise due to multiple factors including geopolitical tensions, increased trade tariffs, and dollar fluctuations, with short-term safe-haven demand expected to continue supporting gold prices.
