Gold surges above $5,400 as demand for safe-haven asset jumps amid Iran conflict

Core Viewpoint - Gold futures surged 4% to over $5,400 per ounce due to escalating Middle East conflicts, prompting a shift towards safe-haven assets [1] - JPMorgan analysts predict a near-term "risk premium" increase in gold prices of more than 5% to 10% following recent US-Israel strikes on Iran [1][2] Group 1: Price Movements and Predictions - Gold was trading approximately $200 below its all-time high from January, marking its eighth consecutive month of gains, with a year-to-date increase of 23% [4] - Silver futures have also risen 21% year-to-date, alongside gains in palladium and platinum [4] - JPMorgan forecasts that gold prices could reach $6,300 per ounce by the end of 2026, driven by demand from central banks and investors [2] Group 2: Geopolitical Impact and Market Reactions - Analysts caution that geopolitical price spikes can be sharp but difficult to sustain, with potential reversals if the conflict eases or if equity market losses lead to asset sales [2] - A prolonged conflict may highlight long-term drivers of gold prices, such as rising deficits and economic deterioration risks if oil prices remain high [3]