Gold prices climbed for a second straight session on Monday, even as the yellow metal was headed for a monthly drop.
Silver prices on COMEX also surged nearly 2%, and sustained gains above $70 per ounce on Monday.
Meanwhile, Brent crude oil remained high above $100 per barrel after Yemeni Houthi rebels escalated the Iran war by attacking Israel.
Base metal prices also surged as the Houthis’ attack heightened concerns about supply disruptions, especially in aluminium.
Gold holds gains
Despite heading for a monthly decline, gold prices advanced for a second consecutive session on Monday.
This uptick was driven by increased safe-haven demand, even as the ongoing Middle East conflict fueled expectations of higher inflation and global interest rates.
Iran’s energy plants and oil wells would face obliteration unless the country opened the Strait of Hormuz, according to President Donald Trump.
His statement followed Tehran’s rejection of US peace proposals as unrealistic and its launch of multiple missile attacks against Israel.
Gold rallied to $4,550 during Monday’s early European session, as traders moved in to capitalise on its recent drop.
This recovery comes after a significant selloff that began just under two weeks ago when the $5,000 support level broke, sending the price tumbling to a low of $4,100 last week.
The price has since seen a volatile comeback, managing to climb back above $4,400. This $4,400 level is now viewed as the first crucial support point for gold in the event of any future decline.
The price of gold is currently set for its poorest monthly performance since 2008, having dropped approximately 14% this March.
This decline is attributed to mounting inflation worries, fueled by a sharp rise in energy prices, which have in turn led markets to reconsider their outlook on interest rates.
Investors increasingly expect major central banks to adopt more hawkish policy stances as energy-driven inflation pressures continue to build.
Silver prices firmed in early European trading despite speculation of central bank tightening to counter inflation driven by jumping oil prices.
Escalating geopolitical risks, specifically Houthi missile strikes on Israeli military sites, provided support for silver.
The COMEX gold contract was last at $4,572 per ounce, up 1.1%, while silver was 1.6% higher at $70.935 an ounce.
Oil remains above $100
Brent crude oil was on track for a record monthly increase. This rise follows the expansion of the Iran conflict, as Yemeni Houthis conducted their initial attacks against Israel.
Brent crude oil has experienced a significant surge this month, rising by approximately 58%, which marks the steepest monthly increase in LSEG data dating back to 1988, surpassing the gains recorded during the 1990 Gulf War.
Meanwhile, US West Texas Intermediate oil has climbed by 51%, achieving its largest monthly gain since May 2020. This dramatic rise in prices was triggered by Iran’s effective closure of the Strait of Hormuz, a crucial transit point for about one-fifth of the world’s oil and gas supplies.
The conflict, which began on February 28 with US and Israeli strikes on Iran, has since escalated across the Middle East, heightening concerns about shipping lanes around the Arabian Peninsula and the Red Sea.
On Monday, Israel’s military reported intercepting two drones launched from Yemen, an event that occurred two days after Iran-aligned Houthis fired missiles at Israel for the first time since the start of the US-Israeli conflict with Iran.
The Iran-backed Lebanese group Hezbollah also launched rockets at Israel on Monday. Although the Red Sea handles approximately 15% of global maritime traffic, the Houthis have not yet targeted shipping in this area.
US President Donald Trump escalated price concerns on Monday by threatening Iran with US attacks on its oil wells and power plants unless it reopened the Strait of Hormuz.
Trump had previously stated that a pause in attacks on Iran’s energy network would last until April 6.
At the time of writing, the WTI crude price was at $103.07 per barrel, up 3.4%, while Brent crude was at $112 per barrel, steady from the previous change.
Aluminium climbs
Base metals began the week with significant volatility.
This instability is driven by rising geopolitical tensions, including Houthi militant involvement in the Middle East conflict and new US troop deployments, which have raised concerns about widespread disruption in the energy markets.
Further stoking anxiety, Trump reportedly told the Financial Times that he aims to “take the oil in Iran,” potentially including the seizure of Kharg Island.
In this climate, equity futures are down. However, Aluminium is an outlier, currently trading up 4.5% following Tehran’s reported attacks on two sites in both the UAE and Bahrain.
Separately, diplomatic efforts are underway, with Pakistan, Egypt, Saudi Arabia, and Turkey meeting to seek a resolution.
The aluminium market faces a potential crisis and the prospect of record prices following Iranian strikes on Middle Eastern production facilities.
Emirates Global Aluminium and Aluminium Bahrain, key regional suppliers, reported damage, and the industry anticipates forthcoming production cuts.
“The conflict’s impact is being amplified because constraints on production elsewhere have eroded global inventories, leaving the market with little buffer against shocks, and a sustained price spike would heap further pressure on manufacturers already reeling from the surge in energy costs,” Neil Welsh, head of metals market at Britannia Global Markets, said in an emailed commentary.
Emirates Global Aluminium (EGA) reported severe damage to its Taweelah site, located in the Khalifa Economic Zones Abu Dhabi (Kezad) industrial park, following missile and drone attacks launched by Iran on Saturday.
The company is still assessing the full extent of the damage, which also resulted in injuries to multiple employees.
The statement noted that the Tavira aluminium smelter’s primary aluminium production reached 1.6 million metric tons in 2025.
The three-month aluminium contract on the London Metal Exchange was last at $3,425.15 per ton, up 4.6% from the previous close.
https://invezz.com/news/2026/03/30/commodity-wrap-houthi-attack-boosts-gold-brent-sees-58-surge-in-march/
