Goldprices rise 2% as Middle East war drives demand

Gold prices surged 2% on Wednesday, recovering from Tuesday's losses amid escalating Middle East tensions. The precious metal climbed to $5,137.64 per ounce, clawing back ground after a four-day winning streak ended. Traders balance gold's risk premium against a stronger US dollar, which gained 1.5% this week. Despite the rally, bullish bets have decreased sharply, with money managers' net long positions near decade lows. Gold has surged 20% this year, hitting an all-time high in January due to geopolitical risks and concerns about US Federal Reserve independence. The conflict between Israel and Iran continues to escalate, with Israel striking Tehran on Tuesday. However, surging energy prices and bond yields rising could limit gold's gains, potentially delaying Fed rate cuts. In Nigeria, the Naira hit N1,390/$ in the official market, extending a two-week decline. Tantalizers rebounded with N83.6 million profit in 2025, reporting N1.29 billion revenue. Nigerians should monitor the Naira's decline and consider local investment opportunities amid global market volatility.

SOURCE: https://nairametrics.com/2026/03/04/gold-rebounds-as-middle-east-tensions-weigh-on-markets/