LONDON, March 2, 2026, 13:19 GMT
- Gold and silver prices climbed, investors seeking safety after U.S.-Israel strikes on Iran escalated the conflict.
- Surging oil prices and sliding equities sent investors toward classic safe havens.
- Some commentators flagged tight silver exchange stocks, with bullish options positioning also cited as potential squeeze fuel.
Gold shot up over 2% Monday, with U.S.-Israel strikes against Iran driving buyers toward safe havens. By 1050 GMT, spot gold was at $5,390.38 an ounce, up 2.1%. U.S. gold futures ran up 3% to $5,406.30. Spot silver advanced 1.7% to $95.36. Platinum slipped, but palladium ticked up. “What we’re seeing is an increase in safe-haven assets,” said ActivTrades’ Ricardo Evangelista. BNP Paribas, meanwhile, hiked its 2026 gold target and pointed to a possible spike above $6,250. Reuters
Markets took the hit all at once. Oil shot higher, while equities tumbled—concerns mounted that turmoil might block shipments through the Strait of Hormuz, an essential channel for oil and fuel flows. Another inflation threat, right as traders were already grappling with the next rate move.
Silver’s recent jump has reignited chatter about a possible “short squeeze” — that’s when traders betting against the metal scramble to buy as prices push higher. The topic surfaces again and again, especially when market liquidity dries up. According to an analysis from Envision Research on Seeking Alpha, COMEX silver stockpiles have seen a steep drop. The note also flagged low put-call ratios—an options signal suggesting traders are piling into bullish bets. Seeking Alpha
Squeezes almost never announce themselves. When things get volatile, futures exchanges may hike margin requirements—the cash needed to keep positions open—quickly dialing back hot money flows.
Analysts are chalking up the recent spike to a blend of geopolitical jitters and straight-up rates math. “Flight to safety,” is how Phillip Streible, chief market strategist at Blue Line Futures, put it in comments to The Economic Times. The publication also highlighted that lower U.S. Treasury yields are shrinking the opportunity cost of holding gold, which doesn’t pay interest. The Economic Times
Underneath the silver market’s headline moves, supply remains a sticking point. China’s commerce ministry kept its export controls in place, according to Reuters, which noted late last year that just 44 firms have clearance to export silver in 2026-2027. Meanwhile, the Silver Institute flagged a likely sixth consecutive annual deficit for 2026—investment appetite still climbing, industrial buyers stepping back.
Technical voices aren’t exactly quiet lately, despite headline noise dominating the backdrop. On Friday, Kitco’s Jim Wyckoff dropped his weekly chart notes across gold, silver, platinum, and palladium, pointing straight at the tug-of-war in momentum and price levels that keeps dictating the tape day by day.
Risks run in both directions here. A quick de-escalation in the Middle East, yields snapping back, or the dollar firming could sap momentum from gold and silver. And with silver, history has shown that rallies sometimes unravel fast, catching traders off guard.
