Gold extends gains as U.S.-Iran tensions lift safe-haven demand

Bullion moved toward a one-month high at the end of February as stalled U.S.-Iran talks, lower Treasury yields and persistent geopolitical risk pushed investors back into precious metals.

Gold prices extended their rally on Friday as growing tension around the U.S.-Iran standoff kept investors defensive and lifted demand for safe-haven assets. Spot gold rose near a one-month high, with market reports showing prices moving above $5,200 an ounce and, in some intraday readings, above $5,250/oz.

Reuters reported that spot gold was up 0.8% at $5,230.56/oz, its highest level since January 30, while U.S. gold futures for April delivery climbed 1% to $5,247.90/oz. The move put bullion on track for its seventh straight monthly gain.

Safe-haven demand rises as U.S.-Iran talks remain unresolved

The latest gains come as negotiations over Iran’s nuclear program remain at a standstill. Markets have been closely watching the talks, with investor sentiment turning more risk-averse as signs of progress remain limited and regional tensions stay elevated. Reuters said the market reaction was tied directly to prolonged U.S.-Iran talks and broader concerns about potential conflict.

Bloomberg also reported earlier this week that gold had been supported by heightened Middle East tensions and uncertainty surrounding U.S. policy, helping bullion hold above the $5,000/oz level after a recent pullback.

Gold recovers after sharp February selloff

The rally marks a continued recovery from early-February volatility. Reuters reported on February 3 that gold had staged its biggest daily gain since 2008 after a sharp selloff, while broader market coverage has noted that last month’s correction was one of the most severe short-term drops in decades.

Even after that pullback, gold remains strongly higher for the year. Bloomberg said earlier this week that bullion had gained about 20% in 2026 as the rally resumed, while Reuters noted that prices are up 7.6% in February alone.

Silver jumps as precious metals rally broadens

The move has not been limited to gold. Mining.com reported that silver surged 6% to around $94/oz in Friday trading, extending the broader precious-metals rally. Reuters, using different intraday pricing, reported silver up 4.8% on the day.

That divergence reflects different snapshots during the trading session, but both sources point to strong momentum across precious metals at the end of the month.

Lower yields and ETF demand add support

Beyond geopolitics, falling U.S. bond yields have also helped gold. Reuters said the U.S. 10-year Treasury yield fell to a three-month low, making non-yielding bullion more attractive relative to other assets.

Investor positioning is also improving. Reuters reported that inflows into gold-backed investment products have strengthened, helping offset earlier selling pressure and reinforcing gold’s rebound.

Fed outlook remains another key market driver

Traders are also watching the U.S. Federal Reserve for clues on the next move in interest rates. Reuters said stronger-than-expected U.S. producer price data has kept inflation concerns alive, but markets are still pricing a meaningful chance of rate cuts later this year.

That matters because lower interest rates generally improve the appeal of gold by reducing the opportunity cost of holding a non-yielding asset. This is a standard market inference supported by the way Reuters framed the current bullion move.

Gold’s winning streak highlights persistent market anxiety

If current prices hold, gold will post its longest monthly winning streak since 1973, according to Reuters. That would reinforce how deeply geopolitical risk, policy uncertainty and macro concerns are still shaping investor behavior in 2026.

For now, the renewed climb in bullion suggests that even after a sharp correction earlier this month, gold remains one of the market’s preferred hedges against geopolitical shocks and economic uncertainty.