--- title: "Gold Investment 101 (Part 3): Escalating US-Israel-Iran Tensions - Observing the Gold Market Amid Geopolitical Risks" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39072553.md" description: "Recently, tensions have escalated again in the Middle East. On February 28th, Israel and the United States jointly carried out military strikes against Iran, which then launched retaliatory actions, sparking widespread market concern over the further evolution of the regional situation. International gold prices showed significant volatility. As of the close on February 27th, spot gold rose 1.88% to $5,278.33 per ounce. 1. Event Background: The Regional Situation Heats Up Again On February 28, 2026, the US and Israel jointly conducted airstrikes on multiple targets within Iran. Iran subsequently initiated retaliatory actions, striking Israeli and US military bases in related regions. Affected by the conflict..." datetime: "2026-03-05T03:03:11.000Z" locales: - [en](https://longbridge.com/en/topics/39072553.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39072553.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39072553.md) author: "[易方达香港](https://longbridge.com/en/profiles/8787667.md)" --- # Gold Investment 101 (Part 3): Escalating US-Israel-Iran Tensions - Observing the Gold Market Amid Geopolitical Risks Recently, the situation in the Middle East has become tense again. On February 28, Israel and the United States jointly carried out a military strike against Iran, which was followed by retaliatory actions from Iran, sparking widespread market concern over the further evolution of the regional situation. International gold prices have shown significant fluctuations. As of the close on February 27, spot gold rose 1.88% to $5,278.33 per ounce. **I. Event Background: Regional Tensions Rise Again** On February 28, 2026, the US and Israel jointly conducted airstrikes on multiple targets within Iran. Iran subsequently launched retaliatory strikes against Israel and US military bases in related regions. Affected by the conflict, there is a risk of disruption to energy transportation through the Strait of Hormuz, and several international oil companies have suspended operations on related routes. As of the time of writing, neither side has shown a willingness to cease fire, and the situation continues to evolve. **II. Historical Performance and Current Reaction of the Gold Market** Historically, gold prices have often shown a degree of resilience during periods of heightened geopolitical risk. Whether it's a regional conflict or a global unexpected event, gold, as a traditional safe-haven asset, typically sees a rapid price reaction in the initial stages of an event, followed by a phase of volatile adjustment. Behind this phenomenon is the fact that gold, as a physical asset without sovereign credit backing, is chosen by some funds as a risk hedging tool when market uncertainty rises. Gold prices had already reacted before the outbreak of this round of conflict. On February 27, spot gold rose 1.88% in a single day, breaking through the $5,250 per ounce mark. In terms of fund flows, global gold ETFs saw a net inflow of over $2 billion that day, indicating that some investors are adjusting their asset allocation structure. **III. The Logic of Gold Prices Under Intertwined Multiple Factors** The impact of geopolitical conflict on gold is not isolated but manifests through multiple transmission mechanisms: **1\. The Linkage Between Energy Supply and Inflation Expectations** As a major oil producer, the Strait of Hormuz near Iran is a key channel for global energy transportation. Data shows that the daily crude oil passing through the strait accounts for about 30% of global seaborne crude oil. If the conflict leads to obstruction of this passage, crude oil supply may be affected, thereby pushing up oil prices. Historical data shows a certain positive correlation between oil prices and gold prices. Rising oil prices are often transmitted to the gold market through inflation expectations. **2\. Long-term Support from Monetary Policy and Central Bank Gold Purchases** In addition to geopolitical factors, the gold market is also continuously influenced by the global monetary policy cycle and central bank gold-buying behavior. As of the end of January 2026, the People's Bank of China has increased its gold holdings for 15 consecutive months, and central banks of many countries around the world are also continuing to promote the diversification of reserve asset allocation. This structural trend provides long-term support for gold demand. At the same time, market expectations regarding the Federal Reserve's interest rate cut cycle also affect the cost of holding gold to some extent. **IV. Characteristics and Volatility Logic of Gold Mining ETFs** For investors focusing on the gold market, a gold mining ETF is a tool that needs to be understood. Unlike gold ETFs that directly track the gold price, gold mining ETFs invest in the stocks of mining companies engaged in gold extraction. The pricing logic of such assets is related to the gold price but has its own characteristics: From a business model perspective, the profitability of mining companies is highly correlated with the gold price. When the gold price rises, the sales revenue and profit margins of mining companies often expand simultaneously; conversely, a falling gold price may squeeze their profitability. The existence of this operating leverage means that gold mining ETFs may exhibit stronger elasticity than the gold price itself during a gold uptrend cycle, but their volatility is usually also more pronounced during a gold price adjustment phase. From a risk characteristic perspective, mining ETFs are affected not only by gold price trends but also by the combined effects of multiple factors such as the operational conditions of individual mining companies, extraction costs, and regional political risks. Therefore, the volatility of such assets is usually higher than that of direct investment in physical gold or gold ETFs. As the only Gold Mining ETF currently available in Hong Kong, the E Fund Gold Miners ETF (2824) aims to closely track the Solactive Global Gold Miners Select Index. The index covers 30 leading stocks from four major gold mining regions: China, Canada, the United States, and Australia. It includes both domestic gold giants like Zijin Mining and Zhaojin Mining, as well as overseas quality targets like Newmont Corporation and Barrick Gold, balancing geographical diversification and concentration of industry leaders. **Data Source: Wind, as of 2026/3/1** Important Information: The issuer of this content is E Fund Management (Hong Kong) Limited. This content does not constitute an invitation or recommendation to invest in fund units. Investments involve risks, and fund prices may rise or fall. Past performance is not indicative of future results. Before investing, investors should carefully read the investment risks related to the fund in the fund prospectus (including the "Risk Factors" section). This content has not been reviewed by the Securities and Futures Commission of Hong Kong. For detailed important notices and disclaimers regarding the E Fund (Hong Kong) Solactive Global Gold Miners Select Index ETF (2824), please visit the E Fund (Hong Kong) website: [https://www.efunds.com.hk/tc/products/51/important/](https://www.efunds.com.hk/tc/products/51/important/). ### Related Stocks - [02824.HK](https://longbridge.com/en/quote/02824.HK.md) - [01818.HK](https://longbridge.com/en/quote/01818.HK.md) - [NEM.US](https://longbridge.com/en/quote/NEM.US.md) - [02899.HK](https://longbridge.com/en/quote/02899.HK.md) - [601899.CN](https://longbridge.com/en/quote/601899.CN.md) - [82824.HK](https://longbridge.com/en/quote/82824.HK.md) - [09824.HK](https://longbridge.com/en/quote/09824.HK.md) - [B.US](https://longbridge.com/en/quote/B.US.md)