Gold prices have seen a significant increase following the escalation of tensions between Israel and Iran, as investors have turned to safe-haven assets to protect their capital, Rks News reports.
In the physical market, one ounce of gold was traded this morning at $3,423.46, representing a 1.2% rise compared to yesterday’s close. Since the beginning of the week, gold has gained more than 3.5%.
Gold futures contracts in the U.S. market also rose by 1.2%, reaching $3,444.10 per ounce.
The price surge comes in the wake of Israeli airstrikes on Iran’s nuclear facilities and missile factories, which Tel Aviv described as an attempt to halt Tehran’s nuclear capabilities. In retaliation, Iran launched around 100 drones toward Israeli territory.
“The strikes are fueling a wave of buying in the gold market… but it’s still too early to tell if this will turn into a long-term trend,” said Julius Baer analyst Carsten Menke. He warned that potential disruptions in oil supply could further impact precious metal markets.
Meanwhile, silver remained stable at $36.36 per ounce, palladium rose by 0.5% to $1,061.06, while platinum fell by 1.5%, trading at $1,274.30.
