Singapore, 10 March 2026 – Gold prices stabilised after recent volatility as markets reacted to remarks from U.S. President Donald Trump suggesting that the ongoing conflict involving Iran could be approaching an end, easing some geopolitical fears that had driven safe-haven demand.
The precious metal had surged earlier amid escalating tensions in the Middle East, but prices steadied after Trump indicated that the conflict might conclude “soon,” triggering a retreat in the U.S. dollar and softening the urgency for investors to seek safety in gold.
Markets React to Signs of De-Escalation
Commodity markets have been extremely volatile since hostilities intensified between Iran, the United States and Israel, disrupting global energy supply routes and fuelling fears of inflation.
Oil prices initially surged sharply amid concerns about potential supply disruptions, particularly through the Strait of Hormuz, a critical maritime route that handles a significant portion of global oil shipments.
However, Trump’s comments that the conflict could end soon helped calm markets and eased some of the risk premium embedded in commodities.
As a result, gold, typically viewed as a safe-haven asset during geopolitical turmoil, stabilised after earlier price swings.
War-Driven Commodity Volatility
The war has caused dramatic fluctuations across commodity markets. Oil prices surged during the early stages of the conflict before pulling back as diplomatic signals emerged.
At the same time, rising energy prices have intensified concerns about global inflation, potentially delaying interest-rate cuts from major central banks and adding another layer of uncertainty for investors.
Such dynamics have contributed to sharp movements in commodities including oil, gold and industrial metals.
Safe-Haven Demand Faces New Test
Gold’s reaction to geopolitical developments highlights its traditional role as a hedge against uncertainty.
During periods of conflict or financial instability, investors often shift capital into gold as a store of value. But when geopolitical risks appear to ease, demand for the metal can soften as investors return to riskier assets such as equities.
Analysts say the direction of gold prices in the coming weeks will depend largely on whether tensions in the Middle East continue to subside or escalate again.
Markets Watching Geopolitics Closely
The conflict has already triggered broad ripple effects across global financial markets, from energy prices to currency movements.
For investors, the key question now is whether the geopolitical crisis will evolve into a prolonged conflict or move toward diplomatic resolution.
If tensions ease, commodity markets could stabilise. But if hostilities intensify again, gold may quickly regain its safe-haven appeal.
