Spot gold and silver prices surged at the opening bell, while crude oil experienced a significant gap-up opening.
On the morning of March 2nd, spot gold opened with a substantial increase, approaching $5,380 per ounce in early trading, marking a gain of nearly 2%.
Spot silver broke through the $95 per ounce barrier, rising over 2% at the start of trading.
Persistent geopolitical tensions since the beginning of the year have been supporting precious metal prices. On February 27th, both spot gold and silver closed higher. Following attacks on Iran over the weekend, gold, as a safe-haven asset, is being viewed with high expectations by the market. However, after rising on February 28th, gold prices experienced a sharp drop on March 1st, drawing significant market attention to today's precious metals activity.
Hareesh V, Head of Commodity Research at Geojit Investments, stated that escalating geopolitical risks could trigger a wave of buying in precious metals, potentially pushing COMEX silver back above $100 per ounce. Furthermore, while a global gold price reaching $6,000 cannot be ruled out in extreme scenarios, its trajectory will largely depend on how the conflict evolves. In the short term, increased market volatility and safe-haven demand are likely to continue supporting gold prices.
CITIC Securities reviewed the market impact of eight major conflicts in the Middle East since 1970, summarizing the following patterns: the safe-haven asset gold performs better than the US dollar; oil prices are still dictated by supply and demand in the long run; US stock performance is directly related to the degree of US military involvement and the progress of the war; and there is no significant impact on Chinese assets.
China Construction Bank Futures believes that the joint US-Israeli attacks on Iran have increased the safe-haven demand for precious metals. Influenced by factors such as chaotic international trade conditions, a clouded global economic growth outlook, the Federal Reserve's accommodative monetary policy, and rising geopolitical risks, the precious metals sector is expected to continue its strong upward trend, supported by the rising trend line established since September 2025.
However, historical experience shows that price movements in precious metals driven by geopolitical events are often short-lived, and the sector's volatility remains high. China Construction Bank Futures recommends that investors maintain a cautiously bullish trading approach while controlling position sizes. Hedgers with long exposure can seize opportunities to establish hedging positions, while those with short exposure should consider appropriately reducing their hedge ratios.
On March 2nd, crude oil opened with a gap-up. Brent crude oil surged by as much as 13% at the open; by the time of reporting, the gains had partially retreated.
Analysts pointed out that if traffic disruptions through the Strait of Hormuz exceed 70%, the market would shift its focus away from fundamental supply and demand and begin directly pricing in a "supply vacuum." If disruptions persist, oil prices could gap up significantly at Monday's open. With the US clearly stating it will not release strategic petroleum reserves for now, upward resistance for oil prices is minimal. As the third-largest producer in OPEC, any instability in Iran could impact crude exports across the region, thereby exacerbating volatility in the global energy market.
Regarding the latest military actions by the US and Israel against Iran, according to reports, on March 1st local time, Israeli Prime Minister Benjamin Netanyahu delivered a speech at the Israeli Defense Forces headquarters in Tel Aviv. He stated that Israel's strikes on Iran would intensify in the coming days. The Israeli Defense Forces announced the mobilization of 100,000 reservists for the ongoing conflict with Iran and claimed to have completed "clearance operations" targeting all senior leadership echelons across various fronts against Iran.
On March 1st local time, US President Donald Trump issued a statement regarding recent US military actions against Iran, indicating that 48 Iranian commanders were killed in one operation and describing the current situation as "progressing rapidly." He stated he was "not worried about anything" and said "things are going well." Trump claimed that the military actions against Iran were "ahead of schedule."
Additionally, on March 1st, Trump posted on social media that US forces had destroyed and sunk 9 Iranian naval vessels. US Central Command stated it had destroyed the headquarters of the Iranian Islamic Revolutionary Guard Corps. Trump said US forces were pursuing the remaining vessels and that in another attack, they had "largely destroyed the Iranian naval headquarters."
Trump indicated that military operations against Iran might last around four weeks. He described Iran as "a large country," suggesting military action might take about four weeks to complete, "or less," calling this the "current administration's anticipated timeline for the military operation." Trump also revealed he might deliver a new public address on the situation soon.
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