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Gold Prices Soar on Geopolitical Tensions: Smart Investment Strategies to Consider
Gold prices continue to surge amid escalating global geopolitical tensions, particularly the ongoing conflict in the Middle East. The rising uncertainty has driven global investors toward safe-haven assets, raising questions about the right investment strategy as gold trades near record-high levels.
According to Commodity Analyst Lukman Leong of Doo Financial Futures, the current rally in gold prices is largely driven by short-term geopolitical sentiment. Although the trigger is temporary in nature, the unclear duration of the conflict continues to support bullish prospects for gold amid persistent global uncertainty.
“The current gold rally is purely driven by geopolitical sentiment in the Middle East. While it may be temporary, no one can predict how long it will last, and some expect it could extend for quite some time,” Lukman stated on Monday (March 2, 2026).
Dollar Cost Averaging Strategy Recommended
In this environment, investors are advised to accumulate gold gradually using a dollar cost averaging (DCA) strategy. This approach helps reduce the risk of buying at peak prices while managing market volatility more effectively.
“The most suitable strategy is to buy gold in stages across different price levels. This accumulation approach allows investors to manage price fluctuations,” Lukman explained.
Should Investors Take Profit Now?
Regarding profit-taking, Lukman emphasized that the decision depends largely on each investor’s initial objective. Those who purchased gold as a hedge against geopolitical risk may consider realizing partial gains.
However, for investors holding gold as a long-term asset, profit-taking may not be necessary.
“If the investment objective is fundamentally driven, such as asset diversification or concerns about fiat currency stability, there is no urgent need to take profits,” he added.
Gold Price Outlook: New Record Highs Ahead?
From a forward-looking perspective, gold prices are expected to maintain upward momentum if geopolitical tensions intensify further in the short term.
Lukman projects that gold could retest and potentially reach new record highs in the range of US$5,500–US$5,600 if the conflict persists. Over the longer term, gold may even break above the US$6,000 level, supported by sustained global uncertainty and safe-haven demand.
Stay Disciplined with Your Investment Plan
Investors are strongly encouraged to remain disciplined and align their strategies with their individual risk profiles. Gold price movements are currently highly sensitive to global geopolitical developments, making risk management and strategic planning essential in navigating this volatile market environment.