Gold rose toward a record on Monday as an escalating conflict between Israel and Iran drove investors toward haven assets.

The precious metal climbed as much as 0.6% early on Monday in Asia to trade around $3,450 an ounce, about $50 short of an all-time peak set in April. The two countries hit each other with barrages of missile and drones over the weekend, with the hostilities pushing up energy prices on the threat to energy infrastructure and transport in the region.

The sudden upsurge of geopolitical risk has added more impetus to a rally that’s primarily been driven by the threat to global economic growth from President Donald Trump’s aggressive tariff agenda. Gold has rallied more than 30% in 2025, with central banks seeking to diversify away from the dollar being another significant driver.

The 1.4% jump in the precious metal on Friday came after a two-day gain as weak US inflation and jobs data fueled bets the Federal Reserve will cut interest rates later this year. Lower rates tend to benefit bullion as it doesn’t pay any interest.

Spot gold rose 0.4% to $3,446.77 an ounce as of 7:10 a.m. in Singapore. The Bloomberg Dollar Spot Index added 0.1% after dropping 0.8% last week. Silver was steady, while platinum and palladium advanced.