Gold prices surged and Bitcoin exceeded ₩100 million KRW (approximately $72,000 USD) on Thursday, as geopolitical tensions in the Middle East continued to escalate, driving investors toward perceived safe-haven assets.
Spot gold prices on the London bullion market rose as much as 2.3% during trading on Thursday, surpassing $5,200 per ounce, according to reports from Seoul-based news outlet The Guru. This increase follows a sharp decline on Wednesday, when gold prices fell as much as 6% to $5,018 per ounce, a drop from a recent one-month high of $5,400. Despite the recent volatility, gold has still seen a year-to-date increase of approximately 17%, fueled by ongoing geopolitical tensions and trade risks.
Peter Kinsella, Global Head of FX Strategy at UBP, stated that gold prices are “clearly recovering” and that “the long-term dynamic remains unchanged,” adding that “the more uncertain the outcome of the war, the more geopolitical risk will be highlighted than before.”
Major banks have echoed this bullish outlook. JP Morgan forecasts gold prices will reach $6,300 per ounce by the complete of the year, citing increased participation from retail investors. BNP Paribas predicts gold will surpass $6,000 per ounce as long as macroeconomic and geopolitical risks persist. Ninety One portfolio manager George Cheballa defined gold as a “hedge against extreme situations,” noting its resilience in both high and low inflation environments, and stating that “the most unfavorable situation for gold is a stable economic environment.”
Bitcoin also experienced gains, trading at ₩105,374,000 KRW (approximately $72,799 USD) as of 9:00 AM KST on Thursday, a 5.09% increase from the previous day, according to data from the South Korean cryptocurrency exchange Upbit. As of 11:00 AM KST on March 5th, Bitcoin was trading around ₩106,000,000 KRW (approximately $72,000 USD). This rally follows a period of volatility linked to recent events in the Middle East, where Bitcoin has largely maintained support around $65,000 since the conflict began.
CoinDesk reported that Bitcoin’s resilience contrasted with the performance of gold, which experienced weakness. Despite the Middle East conflict, Bitcoin jumped above $71,000, leading a broad rally across major cryptocurrencies, with Ethereum, XRP, and Solana also seeing gains between 4% and 6%. The CoinDesk 20 index, a broader market indicator, rose by more than 5% to reach 2,025 points.
Latest Daily Business reported that the recovery in Bitcoin prices coincided with reports of behind-the-scenes contact between the United States and Iran, raising hopes for a de-escalation of tensions in the region. The report also noted that U.S. President Donald Trump’s support for the cryptocurrency market and criticism of banks opposing related legislation had boosted investor sentiment.
