Gold prices continued to surge during Asian trading on Friday, driven by increased safe-haven demand after Israel launched a significant preemptive strike on Iran, reportedly targeting “dozens” of military and nuclear sites.
Earlier in the week, gold had already been climbing amid lingering uncertainty surrounding U.S.-China trade talks. Although negotiations showed signs of progress, a lack of concrete details kept 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 gained 1.6%, reaching $3,459.60 per ounce.
Safe-Haven Demand Surges After Israeli Airstrikes
The sharp rise in gold followed reports of Israel’s extensive air assault early Friday, targeting key Iranian nuclear and military facilities. Explosions were reported in Tehran, prompting Iran to activate its air defenses. In Israel, air raid sirens blared and a nationwide state of emergency was declared.
Two U.S. officials told Reuters that the military operation was carried out solely by Israel, without U.S. involvement. U.S. Secretary of State Marco Rubio confirmed that Israel acted independently, citing national self-defense as the justification for the strike.
Macroeconomic Tailwinds for Gold
Beyond geopolitical tensions, gold also benefited from broader macroeconomic factors. Softer inflation data and rising jobless claims in the U.S. have strengthened expectations of Federal Reserve interest rate cuts, which typically boost demand for non-yielding assets like gold.
With the potential for a wider regional conflict following the Israel-Iran escalation, analysts expect gold to remain well-supported in the near term.
Elsewhere in the metals market, Platinum Futures dipped 0.8% but held near a four-year high. Silver Futures rose 1% to $36.625 per ounce, hovering close to a 13-year peak.
Among industrial metals, benchmark copper futures on the London Metal Exchange slipped 0.3% to $9,678.70 per ton, while U.S. copper futures dropped 0.5% to $4.8195 per pound.
