Introduction
The price of gold surged sharply following Israel’s overnight strike on Iran, reaffirming its role as a safe haven during geopolitical turmoil. The precious metal reached $3,440 per troy ounce, nearing its all-time high of $3,500 from late April. Analysts note that investors are moving into gold, while other assets like bitcoin, silver, and palladium have shown weakness.
Gold up 29% YTD, 40% year-over-year
Gold has seen a steady climb throughout 2025. From January to the end of May, the gold price rose by 29%, and on a year-over-year basis, the increase reached 40%. In comparison, Bitcoin rose only 12% over the same period.
Analyst Pavel Ryba points out that unlike cryptocurrencies and industrial metals, gold retains strong support in times of both economic and geopolitical uncertainty.
Israeli Attack on Iran Sparks Market Reaction
The latest gold price spike was triggered by Israel’s military strike on Iran. In response, investors rushed to gold, pushing its value up by nearly 2% in a few hours, reaching $3,440 per ounce.
Bitcoin, Silver, and Palladium Fall
In contrast, Bitcoin dropped significantly following the escalation. It fell from $108,800 to below $103,000 and later stabilized around $105,000 — a 3% decline.
Other industrial metals also declined:
- Silver: dropped from $36.6 to $36.2 per ounce (-0.1%)
- Palladium: fell from $1,050 to $1,040 per ounce (-2%)
Future Outlook: Gold Headed for $4,000?
According to Ryba, macroeconomic conditions are pushing the gold price higher. Key drivers include:
- Rising inflation
- High public debt and deficits
- Gradual weakening of the US dollar
“Gold could rise by several hundred dollars this year and surpass $4,000 per ounce in 2026. Within a decade, it may reach $6,000–8,000,” Ryba forecasts.
Conclusion
Gold remains the most resilient asset in times of global crisis. Its recent surge to $3,440 confirms that investors continue to view it as a reliable hedge against instability, inflation, and geopolitical uncertainty. With strong long-term projections, the gold price is likely to remain in the spotlight well into the future.
AI – generated image.
