The escalation of the situation in the Middle East has driven safe haven buying, with gold prices hitting a new high and still $50 short Gold prices rose to record highs on Monday as the escalating conflict between Israel and Iran prompted investors to turn to safe haven assets. On Monday morning in Asia, gold prices rose by 0.6% to above $3450 per ounce, about $50 short of the historical high set in April. The sudden rise in geopolitical risks has added more momentum to the rise in gold prices, which is mainly driven by the threat of Trump's aggressive tariff agenda to global economic growth. Gold has risen by over 30% in 2025, and central banks seeking diversification from the US dollar is another important driving force.