Gold Prices Soar Amid Global Tensions

Record gold prices in Q1 2026 have left miners with higher cash flows despite rising mining costs. The SPDR Gold Shares ETF (GLD) and other gold investment vehicles have seen increased demand as global tensions escalate.

The outbreak of war in Iran and subsequent disruption across the Middle East led to fuel and power concerns for gold miners, with diesel shortages becoming a risk in some jurisdictions. Global energy prices spiked, adding to the challenges faced by miners.

While royalties were a major driver of higher AISC (all-in sustaining costs), attention has been on the Iran conflict's impact on the industry. The resilience of gold mining companies may be tested as gold prices pull back from their January peak.