Muscat: In spot trading, gold rose 1.72 percent to $5,368.09 an ounce, marking its strongest level in more than a month. Meanwhile, US gold futures climbed 2.58 percent to $5,382.60 an ounce, reflecting strong investor demand for safe-haven assets amid escalating tensions in the Middle East.

Gold, traditionally viewed as a hedge against political instability and economic volatility, has continued its record-breaking run this year. The metal has hit consecutive all-time highs in 2025, underpinned by mounting global uncertainty and sustained investor interest.

The latest rally builds on an impressive 64 percent gain so far this year. Analysts attribute the sharp rise to robust central bank purchases, significant inflows into exchange-traded funds (ETFs), and growing expectations that the US Federal Reserve may adopt a looser monetary policy stance in the coming months.

Adding to market jitters, data released last Friday showed that US producer prices rose more than expected in January, raising concerns that inflationary pressures could intensify in the near term. Higher inflation often strengthens gold’s appeal as a store of value.

Other precious metals also recorded gains. Silver advanced 1.68 percent to $95.35 an ounce in spot trading. Platinum edged up 0.74 percent to $2,382.15, while palladium posted a modest increase of 0.25 percent to $1,790.60.