Monday, 25 May 2026
Experts: Middle East tensions unlikely to push gold prices higher in the long run
Despite recent tensions between Iran and Israel, economic experts expect that gold prices will not surge over the long term.
On Tuesday morning, the spot price of gold held steady at $3,385.11 per ounce, after a slight increase in earlier trading sessions.
Carsten Menke, an analyst at Julius Baer Bank, noted that while recent geopolitical tensions caused a mild rise in gold prices—less than 1% since Israel’s initial strike—this was mainly due to trading activity by speculators and automated algorithms, not increased demand from long-term investors seeking a safe haven.
Historically, Menke said, gold price spikes prompted by geopolitical shocks tend to be brief, according to the Middle East News Agency.
Analysts at ING Bank added that ongoing uncertainty could keep some support for gold, as investors look for safer assets.
Last week, gold rose nearly 4% due to the Middle East conflict, but prices appear to have stabilized around $3,400 per ounce as markets adjust.
Experts agree that in the coming period, markets will closely monitor geopolitical developments in the region, but long-term impacts on gold prices are expected to remain limited.