Gold vaulted past $5,400 on Monday, challenging record highs as a sharp escalation in Middle East conflict triggered a powerful flight to safety. Joint US–Israeli strikes that killed Iran’s Supreme Leader have effectively shut the Strait of Hormuz, jeopardizing roughly 20% of global oil shipments and driving crude prices sharply higher. The resulting surge in energy costs has reignited fears of a new inflation wave, pushing investors out of currencies and equities and into bullion.
Gold is increasingly outperforming other assets as a hedge against the risk of a drawn‑out regional war and potential attacks on key Saudi energy facilities, including the Ras Tanura refinery. A modest production increase from OPEC+ has done little to soothe markets, while major technology and banking stocks have slumped, further underscoring gold’s appeal as a safe haven and store of value. The metal has now extended its longest winning streak since 1973, as the world contends with a critical trade chokepoint in lockdown and mounting geopolitical instability.
