Spot Gold Surges 1% Amid U.S.-Israel Strikes on Iran Escalation

Spot gold prices climbed over 1% in early trading as safe-haven demand spiked following joint U.S.-Israel military strikes on Iran, which reportedly killed Supreme Leader Ali Khamenei and targeted key nuclear and military sites. The conflict, entering its second day, has disrupted oil shipments via the Strait of Hormuz and prompted Iranian missile retaliation across the region. Investors eye prolonged tensions boosting bullion amid regime change calls from President Trump.

Event Overview
On February 28, 2026, Israel and the U.S. launched coordinated airstrikes codenamed Operation Roaring Lion and Epic Fury, hitting Tehran, Isfahan, and other Iranian cities. Iranian state media confirmed Khamenei's death, triggering vows of severe retaliation and missile barrages on U.S. bases in the Gulf. Trump stated the strikes aim to dismantle Iran's capabilities and topple the regime, projecting completion in under a month. 

Gold Market Reaction
Spot gold (XAU) rose above $5,278 per ounce, up 1% from prior close, with intraday peaks near $5,300 amid flight-to-safety buying. Analysts forecast further upside if Strait disruptions persist, potentially lifting prices to $5,500 amid oil volatility. Silver and regional equities also gained as risk premiums embedded in commodities. 

Key Highlights

• Gold spot price up over 1% to $5,278/oz post-strikes
• Khamenei killed; IRGC leaders targeted in 500+ Israeli sorties 
• Iran retaliates with missiles on U.S. bases in Bahrain, Qatar, UAE
• Strait of Hormuz partially closed, stalling 150 oil tankers 
• Trump pushes regime change; Netanyahu hails threat removal 

Sources: Reuters (RTRS), Wikipedia, Bloomberg, CNN