Key Highlights:
- The U.S. launched strategic strikes on Iran’s nuclear sites, including the heavily fortified Fordow facility.
- Despite heightened geopolitical tensions, gold prices slipped slightly, defying safe-haven expectations.
- Silver edged higher, supported by rising uncertainty and softer dollar performance.
Precious Metals React Cautiously Amid Middle East Escalation
Despite a major escalation in the Middle East conflict, the precious metals market offered a subdued response on Monday. Gold prices dipped slightly, while silver posted modest gains, leaving analysts puzzled over the lack of a traditional safe-haven rally.
U.S. Strikes Iran’s Nuclear Sites
Over the weekend, the United States conducted a coordinated military operation targeting Iran’s three remaining nuclear facilities. The most critical of these was the Fordow uranium enrichment plant — a hardened site buried nearly 300 feet underground near Qom. The U.S. deployed seven B-2 stealth bombers armed with six 15-ton “bunker buster” bombs, weapons capable of penetrating heavily reinforced underground structures. According to President Trump, the Fordow facility was “completely obliterated.”
The other two targets were neutralized by Tomahawk cruise missiles launched from U.S. submarines positioned in the Persian Gulf. The strikes mark the most aggressive U.S. action in the region in years.
Iran Responds with Missile Strike
Iran vowed swift retaliation, firing multiple missiles at a U.S. military base in Qatar on Monday. While no casualties were reported, the move significantly raised the stakes and the risk of further escalation. President Trump warned of additional military action should Iran target U.S. interests or reject peace with Israel.
Gold Declines Despite Safe-Haven Narrative
Contrary to expectations, gold futures fell by $1.20, even as the ICE U.S. Dollar Index slipped 0.40%, a condition that typically favors higher gold prices. Analysts suggest that selling pressure in the gold market outweighed geopolitical tailwinds and dollar weakness — a surprising signal that sentiment may be shifting.
“Had the dollar remained flat, gold could have dropped even more,” one analyst noted, pointing to underlying bearish momentum.
Silver Posts Modest Gain
Silver, in contrast, gained $0.13 (0.36%) to close at $36.14, reflecting a slightly stronger risk-off sentiment. The metal often benefits alongside gold in times of geopolitical stress but is also influenced by industrial demand and broader economic conditions.
Conclusion
The muted reaction in precious metals — especially gold — raises questions about investor behavior in today’s volatile environment. While tensions in the Middle East continue to escalate, markets appear to be factoring in broader macroeconomic trends and potential shifts in monetary policy more heavily than geopolitical risks alone.
Stay tuned for updates as the conflict unfolds and market sentiment adjusts with Daily Forex Pakistan.