Yeliz Akmaca 
Global markets woke up to geopolitical risks once again on Thursday morning. Escalating tensions between the United States, Israel and Iran have noticeably changed investor behavior. As of March 5, 2026, gold prices moved higher again due to the geopolitical tension. Spot gold rose to $5,177 per ounce, while gram gold in Turkey traded around 7,500 TL.
As geopolitical risks increase in global markets, investors are closely watching gold prices. Movements in gram gold, spot gold and oil prices have become more pronounced amid rising war risks and concerns about potential disruptions in global energy supply.
Middle East Crisis Deepens
The flow of news indicating an expansion of the conflict played a decisive role in financial markets. Developments on Wednesday suggested that tensions are beginning to stretch beyond regional boundaries.
A U.S. submarine reportedly sank an Iranian warship off the coast of Sri Lanka, killing at least 80 people. On the same day, NATO air defense systems reportedly intercepted and destroyed an Iranian ballistic missile fired toward Turkey.
And the geopolitical picture does not end there.
The son of Iran’s slain Supreme Leader Ayatollah Ali Khamenei has emerged as one of the leading figures to potentially succeed him. This development strengthens expectations that Tehran may not easily back down from the confrontation. The military campaign launched by the United States and Israel five days ago has already killed hundreds of people and triggered volatility across global markets.
As a result, investors are increasingly pricing in the possibility of a prolonged geopolitical crisis rather than a short-lived escalation.
Volatility in Gold Prices May Continue
Market analysts believe two different dynamics are currently influencing gold prices. The first is the classic safe-haven demand that typically emerges during geopolitical crises. The second is the heightened volatility driven by uncertainty surrounding the conflict.
According to analysts, the ongoing crisis could support gold prices over the longer term. However, until there are clear signals that the conflict is de-escalating, price movements are expected to remain sharp and volatile.
Gold has already delivered a remarkable performance since the beginning of the year. Amid rising geopolitical tensions and economic uncertainty, the precious metal has gained about 20% since the start of 2026, repeatedly hitting new record highs.
Oil Prices Also Surge
Energy markets also reacted quickly to geopolitical developments.
Concerns that oil and natural gas supplies in the Middle East could be disrupted pushed energy prices higher. Brent crude rose 3.26% to $83.99 per barrel on Thursday morning, marking its fifth consecutive session of gains.
Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed 3.70% to $77.42 per barrel.
The main scenario currently being discussed in energy markets is straightforward: if the conflict expands further, global oil supply chains could come under serious pressure.
A New Fed Chair Candidate
Alongside geopolitical developments, there is also notable news on the monetary policy front.
U.S. President Donald Trump officially nominated former Federal Reserve governor Kevin Warsh as the next chair of the U.S. central bank.
Warsh is widely viewed by markets as a policymaker who may be more open to interest-rate cuts, a factor that has already sparked renewed debate about the direction of U.S. monetary policy.
However, markets still expect the Federal Reserve to keep interest rates unchanged at the March 18 meeting.
Investors are now focusing on upcoming U.S. macroeconomic data. Weekly jobless claims due later in the day and the February employment report scheduled for Friday are seen as key indicators for the Federal Reserve’s next policy moves.
How Much Is Gram Gold Now?
Sharp movements in global gold prices have also affected the Turkish market.
Gram gold, which started the week above 8,000 TL in Istanbul’s Grand Bazaar, quickly retreated to around 7,400 TL before partially recovering and stabilizing near 7,500 TL.
Earlier in the week, spot gram gold had tested 7,661 TL. On Tuesday, prices fell sharply and dropped to 7,066 TL. By the third trading day of the week, however, the market began to recover, pushing gram gold back above 7,300 TL.
In short, the main factor determining the direction of gold prices is no longer limited to inflation or interest rates.
Latest Gold and Oil Prices
Current market levels are as follows:
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Spot Gold: $5,177
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Gram Gold: 7,500 TL
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Brent Crude: $83.99
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WTI Crude: $77.42
As global markets continue to monitor geopolitical developments closely, investors are debating whether gold prices could reach new highs if tensions continue to escalate.
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