Gold prices continued their upward trajectory in Asian markets on Friday, fueled by a spike in safe-haven demand following a significant Israeli military strike on Iran. The attack targeted multiple nuclear and military facilities, raising fears of a broader conflict in the Middle East.
Earlier in the week, gold had already been gaining ground due to ongoing U.S.-China trade uncertainty. While some progress was reported, the lack of concrete details left investors on edge.
By 22:50 ET (02:50 GMT), spot gold had climbed 1.5% to $3,436.97 per ounce, while August gold futures advanced 1.6% to $3,459.60.
Israel’s Preemptive Strike Triggers Market Jitters
The precious metal’s rally accelerated after Israel launched a wide-reaching airstrike early Friday, hitting dozens of Iranian installations. Media reports noted widespread explosions in Tehran, prompting Iran to activate its air defense systems. Air raid sirens sounded across Israel, which had entered a state of emergency in anticipation of potential retaliation.
According to Reuters, two U.S. officials confirmed that the military operation was conducted solely by Israel, with no involvement from the United States. U.S. Secretary of State Marco Rubio also emphasized that Israel acted independently, describing the strike as an act of self-defense.
Macroeconomic Drivers Strengthen Gold’s Appeal
Beyond geopolitical risk, gold’s gains were also supported by recent U.S. economic data. A rise in jobless claims and subdued producer price inflation increased bets that the Federal Reserve may cut interest rates sooner than expected. These expectations have enhanced the attractiveness of gold, a non-yielding asset, in uncertain times.
With tensions escalating between Israel and Iran, analysts suggest gold prices could continue to climb as investors seek shelter amid rising geopolitical risk.
Elsewhere in the metals market, platinum futures slipped 0.8% but remained close to four-year highs. Silver futures gained 1%, hitting $36.625 per ounce — near a 13-year peak. Industrial metals showed a mixed performance, with benchmark copper on the London Metal Exchange edging down 0.3% to $9,678.70 a ton, while U.S. copper futures dipped 0.5% to $4.8195 per pound.
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