Learn How War May Affect The Price Of Gold and Precious Metals

• Rising global tension and the prospect of major power conflict has given renewed attention to the importance of gold as a safe haven asset.
• Fear of loss, depth of military involvement, and disruption of trade are three ways that war can impact the gold price.
• With future conflicts such as a possible Chinese takeover of Taiwan remaining threats, gold remains a vital tool for diversifying portfolios and helping safeguard wealth.

After the horrors of World War II, Europe went to great lengths to ensure that such a conflict never again ravaged the continent. Despite the constant threat from the Soviet Union during the Cold War, European countries continued working together to ensure that they remained united. And once the Cold War ended, many people thought that the possibility of major power war was over.

With the US as the world’s hegemon and the Soviet Union consigned to the dustbin of history, many people thought that war was largely a thing of the past. Sure, minor conflicts might erupt in less developed countries, but the threat of war was thought to be something that First World nations had overcome.

Now we know better, of course. Decades of war on terror and now more recent conflict in Europe and the Middle East have reminded us that war is a threat that can resurface at any time.

War has a significant effect on the lives of those unfortunate enough to be caught up in conflict zones. But it has significant effects on the lives of people outside conflict zones too.

Whether it’s through disruptions to trade, disruption of travel, or other factors, the lives of everyone are affected by war. And the longer a war lasts and the deeper the conflict reaches, the more people are affected.

We’re seeing today how war and the threat of war is impacting the price of gold. Gold is already a popular safe haven asset and thousands of people have already sought to help protect their assets with gold due to rising economic uncertainty.

But the threat of war can result in even greater demand for gold, as people seek certainty during uncertain times. Here are three ways that war can affect the price of gold.

1. Fear of Conflict

When people start to fear for their financial well-being, they often flee to what they know or to what is familiar. In many cases this means heading for the safety of gold.

Many people may not realize the many advantages of gold, but they have an innate sense that owning gold can help them. And during times of unease or uncertainty, gold becomes a popular safe haven asset.

Gold can help to diversify your portfolio, assisting you in helping protect your wealth against the damage that can be done when financial markets plummet. It can act as a hedge against inflation, as it maintains its value over the long term. And it can gain value during periods when other assets are losing value.

When people start to fear that their assets will lose value, gold is very often one of the first assets they will seek out. And the more fear there is of war breaking out or of war continuing, the more the gold price could rise as more and more people seek to buy it.

2. Depth of Conflict

The depth and severity of war are also factors that affect the price of gold. Civil wars in Africa, isolated terrorist incidents in the Middle East, or border clashes in Asia don’t really impact the gold price.

In some ways this is because they happen so regularly that they’ve become ho hum. But they also don’t normally threaten to draw major powers into conflict.

The prospects for those types of wars and clashes spilling over and affecting the world economy are generally pretty slim. But when war breaks out between major powers, even proxy wars, and when the conflict could potentially risk nuclear war, the consequences of a deeper conflict could be severe.

The fighting in Ukraine that began in 2022 reminded most people that nuclear war is still a threat. And the longer the war goes on, the more damaging it could be and the greater the likelihood that a minor miscalculation could result in major consequences.

The attacks on Iran that took out Iranian leadership in early 2026 could end up destabilizing the Middle East, with the potential for numerous Gulf states and even major Western nations to get involved. Even though President Trump has said that the attacks will last four weeks, the US could end up getting pulled in for an even longer period of time.

If the US ends up getting involved in Iran like it did in Iraq and Afghanistan, it could end up costing trillions of dollars over the years, which could significantly degrade the US government’s financial standing. And if it pulls in other major powers like Russia and China due to balance of power fears, there is no telling where things might end.

The more severe a war is and the greater number of major powers involved, the greater the effect could be on gold. And the longer the war lasts, the more people may decide to buy gold to help protect themselves.

3. Disruption of Trade

Trade between nations is always one of the first casualties of war. And if a country at war is a major producer of necessary goods or raw materials, the effects of war could impact the whole world.

When the conflict in Ukraine broke out, it disrupted trade as many Ukrainian exports couldn’t be produced anymore, while other goods like grain ended up flooding European countries and earning the ire of European farmers. Meanwhile Russian products ended up becoming increasingly sanctioned.

The recent attack on Iran has upset world oil markets, with prices for oil and gas climbing. And commercial shipping is on guard as well, as Iran has closed the Strait of Hormuz and could  launch attacks on any ships that try to make it out of the Persian Gulf.

Trade disruptions from war could result in price increases for both commodities and finished goods. And the longer a war goes on, the greater the disruption could be.

Over time we’ll see just how damaging the impact of these disruptions can get, particularly if these conflicts intensify. But the longer they drag on, the more damage could be done.

Current Crises Affecting Gold

Over the past year, the dominant factor pushing gold prices higher has probably been the uncertainty and unease about the direction of the economy. Fear of the future has helped push the gold price to record highs, and even some recent pullbacks don’t seem to have taken any steam out of gold’s rally.

Economic considerations aren’t the only factor that push gold higher, however, as geopolitical concerns have become increasingly important for the gold price. The capture of Venezuelan President Nicolas Maduro brought that to a point, and now the combat operations in Iran are helping fuel geopolitical concerns that could support a higher gold price.

Combat Operations Against Iran

The war against Iran could end up becoming a major maelstrom, pulling in numerous Gulf states, NATO powers, or even Russia, Iran’s Caspian Sea neighbor. Iranian allies in Lebanon could target Israel, and Iran’s Houthi allies in Yemen could harass shipping transiting the Suez Canal.

In short, anything could happen in the Middle East, and while President Trump may think he can limit combat operations to just a few weeks, there’s no telling who might want to get involved. If the conflict ends up widening and disrupting a significant amount of world trade due to disruption in oil and shipping markets, there’s no telling how severe the impact could be on the world economy.

The War in Ukraine

While Iran is taking center stage today, we can’t forget about the war in Ukraine, which continues to fester after years of bloody warfare. While it may just be a proxy war now, that doesn’t mean that it couldn’t flare up into an all-out Russia vs. NATO conflict.

At the very least, taxpayers may end up being on the hook for billions of dollars worth of military assistance to the Ukrainian government. And if Ukraine ends up collapsing, does anyone really think that NATO is going to allow Russian forces to waltz right up to the border with Poland, Slovakia, Hungary, and Romania, all NATO members?

With wars going on in both Eastern Europe and the Middle East, the risk that either one of those conflicts could snowball into something bigger can’t be ignored.

Future Crises That Could Affect Gold

Conflict in the Middle East and Eastern Europe aren’t the only potential crises that could impact the gold price. There’s a great deal of fear that China might feel emboldened in the next few years to take over Taiwan, with many US officials afraid that 2027 might mark the year that China finally decides to take over the island.

If China were to do so, the disruption to world trade could likely make what’s happening today look like nothing. And with Western attention today turned towards Ukraine and Iran, could the US and other Western countries afford to get involved in conflicts on three different fronts?

Just imagine what would happen if the US and China were to get into a war over Taiwan. Almost overnight, many of the goods Americans rely on would disappear. Forget about being able to buy clothes, electronics, or parts to repair cars and household appliances.

China is also a major producer and consumer of gold, so any future conflict involving China would undoubtedly affect the gold price. That could be the result of Western buyers buying more gold as they fear the effects of war, or the result of Chinese gold production no longer being available to world markets, or the result of Chinese buyers snapping up more gold to help protect themselves.

Whatever the reason, there’s a great chance that any future conflict will be one that involves great powers and major gold producers. And that could impact the gold price.

Buy Gold Today

Everything we’re seeing today indicates that the future could be one of greater instability and uncertainty. Economic instability and uncertainty have certainly weighed on people’s minds over the past year, but growing geopolitical instability and uncertainty could play an increasingly important role in gold price movements.

Future geopolitical conflict could impact the price of gold directly not just as the result of war, but also as a result of the changes to the monetary and financial systems that could come about as a result of any future conflict.

Both Russia and China have been buying significant amounts of gold in recent years, and there is widespread speculation that the future of the world monetary system may lie in the return of gold-backed currencies to international prominence.

But no matter what happens, many analysts expect that conditions today are supportive of higher gold prices in the future, with predictions that gold could reach close to $7,000 an ounce in the coming months. Rising uncertainty, greater potential for conflict, and increasingly fearful populations are all factors that could help boost the gold price.

With so much uncertainty in the world today, now may be the right time to start thinking about buying gold. There are numerous options to consider, from rolling over retirement savings into a gold IRA to buying gold coins and bars to store at home.

No matter how you want to buy gold, there is a product or service out there that can cater to your needs. With over a decade of experience in precious metals and thousands of satisfied customers, the experts at Goldco are ready to help you benefit from owning gold.

Whether you’re looking for financial security, greater peace of mind, or long-term growth of your assets, Goldco’s representatives can answer your questions so that you can work towards achieving your goals.

Call Goldco today to learn more about how gold can benefit you.

This article was originally published in May 2022 and was updated in March 2026.

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