Israel-Iran War LIVE: US Signals Extended Military Operations

Israeli Prime Minister Benjamin Netanyahu said the war against Iran would not take years and would not be endless, reported Reuters. Speaking to Fox News, he described the conflict as potentially quick and decisive. As fighting entered its fourth day, explosions were reported in Tel Aviv amid Iranian missile attacks. Israel struck Iran’s state broadcaster complex in Tehran and Hezbollah targets in Lebanon, while drones reportedly hit the US embassy in Riyadh, causing minor damage, Saudi authorities said.

Ponmudi R, CEO of Enrich Money, told Mint that gold prices are holding firmly above key moving averages near the prior all-time high resistance zone, signaling strengthening momentum.

He noted that COMEX Gold is trading in the $5,300–$5,500 range after recent consolidation, with strong buying interest seen in the $5,100–$5,200 support band. A sustained move above the $5,500–$5,600 zone could pave the way for fresh record highs, he added.

In Washington on March 2, US President Donald Trump said that the United States has the capability to continue military operations against Iran well beyond the initially projected four-to-five-week timeframe.

Speaking in Washington at his first public appearance since the US–Israeli airstrikes began, Trump said the campaign would last “whatever it takes”. Meanwhile, Secretary of State Marco Rubio told reporters on Capitol Hill that the hardest US military strikes are yet to come, signalling a possible intensification of operations, reported The New York Times.

A stronger US dollar generally makes dollar-denominated assets such as bullion more expensive for investors holding other currencies, however, the inverse relationship does not always hold, reported Mint, citing Reuters.

In times of elevated uncertainty, including geopolitical tensions and wider market volatility, investors tend to move into both the dollar and gold simultaneously, treating them as protective assets despite their typical negative correlation.

A sustained disruption in oil and gas supplies from the Middle East due to a prolonged war with Iran could trigger a sharp spike in inflation and a significant drop in euro zone output, European Central Bank (ECB) Chief Economist Philip Lane told the Financial Times.

He said the scale of the shock would depend on the breadth and duration of the conflict. Citing a 2023 ECB analysis, Lane noted that a persistent fall in energy supplies and regional economic disruptions could lead to energy-driven inflation and weaker growth across the bloc.

Other precious metals also traded higher on Tuesday. Spot platinum rose 0.6% to $2,316.50 per ounce, while palladium advanced 1.6% to $1,795.08, reported Mint. The gains come amid broader strength across metals markets as investors track geopolitical developments and commodity price movements in a volatile trading environment.

Gold prices extended gains for a fifth straight session on March 3 as escalating conflict in the Middle East pushed investors toward safe-haven assets, reported Reuters.

Spot gold rose 0.7% at $5,362.90 per ounce, as of 0452 GMT amid investor concerns over the widening war following US–Israel strikes on Iran. Heightened geopolitical uncertainty supported bullion prices, with traders seeking refuge in safe assets. The rally comes as markets remain cautious, with global tensions and potential supply disruptions keeping investors on edge.

The US dollar hovered near a more than five-week high on March 2, supported by firm demand and cautious investor sentiment amid escalating geopolitical tensions.

The greenback strengthened as markets turned risk-averse, with investors seeking safety in the world’s reserve currency. Analysts noted that continued uncertainty in West Asia and volatility across global markets have underpinned the dollar’s recent gains, even as traders assess potential impacts on inflation, energy prices and broader financial stability

Gold and silver exchange-traded funds (ETFs) surged at the opening bell on March 2 as investors shifted to safe-haven assets following the US–Israel strikes on Iran, reported Mint.

The escalation has widened the West Asia conflict, prompting heightened geopolitical uncertainty. Analysts expect volatility through the session, with fresh inflows into precious metals likely as global equity markets face pressure amid rising risk aversion and concerns over further regional destabilisation.