Gold Prices Surge Amid Middle East Tensions
Record Highs Approached
Gold prices experienced a surge in Asian trade on Friday, nearing record highs as reports of Israeli strikes on Iran escalated demand for safe-haven assets. Spot gold reached as high as $2,417.79 an ounce, with gold futures for June peaking at $2,433.0 an ounce. These prices were just below the record highs of $2,430.96 an ounce reached the previous week.
Escalation in Iran-Israel Conflict
Reports of explosions across Iran, Syria, and Iraq heightened concerns about the Iran-Israel conflict. Multiple media outlets reported Israeli retaliation against Iran following an attack the previous week. Of particular concern were explosions near Iranian nuclear facilities in the city of Isfahan.
Safe Haven Demand Boosts Gold
The fear of a worsening conflict in the Middle East prompted a rush into safe-haven assets like gold, offsetting recent warnings about higher U.S. interest rates. Despite a sharp rise in the dollar after the Iran-Israel news, gold prices remained resilient.
Strong Weekly Gains
Gold prices are on track for significant weekly gains, with spot prices up approximately 3% over the past seven days. This marks the fourth consecutive week of gains for gold, driven by persistent safe-haven demand amid deteriorating geopolitical conditions in the Middle East.
Rise in Other Precious Metals
The surge in gold prices also lifted other precious metals. Platinum futures rose 0.9% to $958.10 an ounce, while silver futures climbed 1.1% to $28.70 an ounce.
Upbeat Industrial Metals
In addition to precious metals, industrial metals saw gains as well. Copper and aluminum prices reached new peaks in 2024 on Friday due to expectations of tighter supplies following intensified U.S. sanctions on Russian metal exports. Three-month copper futures rose 0.5% to $9,799.0 a ton, while aluminum futures increased by 1.3% to $2,651.0 a ton. Both metals were at their strongest levels since May 2022 and January 2023, respectively.
