Geopolitical Risk Ignites Commodities: Gold Eyes $5,600, Oil Rallies on Iran Fears

WikiFX

| 2026-01-30 12:00

Abstract：Escalating geopolitical tensions involving the US and Iran have triggered a massive flight to safety in global markets, propelling Gold toward the $5,600 mark and driving crude oil prices higher on supply concerns.

Global markets are witnessing a sharp rotation into defensive assets and energy commodities as escalating tensions in the Middle East rattle investor sentiment following reports of a potential US military strike on Iran.

Gold Approaches Record valuations

The flight to safety has been most evident in the precious metals market, where Gold (XAU) continues its aggressive rally. The yellow metal is now trading close to $5,600, a valuation driven by traders seeking insulation from both geopolitical instability and the broader economic uncertainty characterizing the 2025 landscape.

Oil Gains on Supply Disruption Risks

Crude oil markets have reacted positively to the geopolitical premium, with prices climbing on fears that a conflict involving Iran could severely disrupt global energy supply chains.

Gold (XAU) Price: $5,600
US Military Strike Risk: Pricing in potential blockades in Strait of Hormuz.
Currency Impact: Potential support for CAD, safe-haven demand for USD and JPY.

Market Analysis Outlook

The rally in Gold and oil signals heightened volatility. For Forex traders, the correlation remains strong between energy supply risks and CAD volatility against the USD.