Escalating tensions surrounding Iran have injected volatility into global markets, prompting investors on Wall Street to seek safety in traditional defensive assets. Gold has emerged as a key beneficiary of this shift in sentiment. As concerns grow about potential disruptions to global oil supply and broader Middle East instability, investors have increasingly turned to bullion and gold-linked funds to protect portfolios from geopolitical risk. Prices surged sharply following military strikes involving Iran, at one point climbing above $5,400 per ounce as investors rushed toward safe-haven assets.

The recent surge is part of a broader rally that has been building for months. Over the past six months, gold prices have risen dramatically, gaining roughly 50% in dollar terms as global economic uncertainty, currency fluctuations and geopolitical tensions boosted demand for the metal. In fact, the broader rally began in 2025 when prices surged from around $2,600 to above $4,300 per ounce, driven by policy uncertainty, currency movements and increasing investor demand for hard assets. This long-term uptrend has reinforced gold’s reputation as a reliable store of value during turbulent periods, and stocks like Newmont Corporation (NEM Quick QuoteNEM - Free Report) , Agnico Eagle Mines Limited (AEM Quick QuoteAEM - Free Report) and Royal Gold, Inc. (RGLD Quick QuoteRGLD - Free Report) have come into focus.

Gold offers several advantages during crises, such as the current Iran conflict. Unlike currencies, it is not tied to any single government or central bank, making it attractive when political tensions rise. The metal also serves as a hedge against inflation, which becomes particularly relevant when wars threaten to push energy prices higher and destabilize global supply chains. For institutional investors, gold also provides diversification because it often performs well when equities or other risk assets decline.

Despite these strengths, gold is not without limitations. The U.S. dollar has also attracted strong safe-haven flows due to its status as the world’s primary reserve currency and the liquidity of U.S. Treasury markets. Higher interest rates can also reduce gold’s appeal because the metal does not generate income.

Still, the current market reaction shows that gold remains central to the global safe-haven trade. As geopolitical tensions linked to Iran continue to evolve, investors appear increasingly willing to hold the precious metal as both a hedge against uncertainty and a long-term store of value. It will thus be prudent to invest in gold stocks in the current environment.

Our Choices

The stocks below flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Newmont Corporation is a gold producer. NEM’s expected earnings growth rate for the current year is 27.6%. The Zacks Consensus Estimate for its current-year earnings has improved 24.7% over the past 60 days. HMY has a Zacks Rank #1.

Agnico Eagle Mines is a global gold mining company engaged in the exploration, development and production of gold. AEM’s expected earnings growth rate for the current year is 60.4%. The Zacks Consensus Estimate for its current-year earnings has improved 34.4% over the past 60 days. AEM has a Zacks Rank #1.

Royal Gold is a Denver-based precious metals royalty and streaming company. RGLD’s expected earnings growth rate for the current year is 70.7%. The Zacks Consensus Estimate for its current-year earnings has improved 18.4% over the past 60 days. RGLD has a Zacks Rank #2.

Bottom Line

Gold remains an attractive investment today because the ongoing Iran conflict and economic uncertainty elevate its safe-haven appeal. Central banks and investors are diversifying away from risky assets. This has boosted gold’s demand as a hedge against market and policy risks.