In Asian trading on Friday, gold prices experienced a significant surge, nearing record highs as reports of Israeli strikes on Iran heightened demand for safe-haven assets, particularly against the backdrop of escalating tensions in the Middle East.
Spot gold reached as high as $2,417.79 per ounce, while gold futures expiring in June peaked at $2,433.0 per ounce. Spot prices hovered just below the record highs of $2,430.96 per ounce reached last week.
The focus intensified on the Iran-Israel escalation following reports of explosions across various parts of Iran, Syria, and Iraq. Multiple media outlets, including Iranian news agencies, reported these explosions, with U.S. officials confirming Israeli retaliation against Iran for an attack the previous week.
Of particular concern were the explosions in Isfahan, located near several Iranian nuclear facilities. Earlier in the week, Iran had issued warnings to Israel against attacking its nuclear sites, even suggesting a reconsideration of its stance on nuclear weapons in such a scenario.
Despite recent warnings regarding higher U.S. interest rates, fears of an escalating conflict in the Middle East drove a rush into safe-haven assets like gold, propelling the yellow metal’s prices higher.
The dollar saw a sharp rise following news of the Iran-Israel tensions, but this had little impact on gold prices.
Friday’s gains positioned gold prices for robust weekly gains, with spot prices up approximately 3% over the past seven days. This week marked gold’s fourth consecutive week of gains, supported by persistent safe-haven demand amid deteriorating geopolitical conditions in the Middle East.
Other precious metals also experienced notable increases in response to the strikes on Friday. Platinum futures rose by 0.9% to $958.10 per ounce, while silver futures increased by 1.1% to $28.70 per ounce.
In the realm of industrial metals, copper and aluminum prices reached new peaks for 2024 on Friday, driven by expectations of tighter supplies following the U.S.’s intensified sanctions on Russian metal exports. Three-month copper futures rose by 0.5% to $9,799.0 per ton, while one-month copper futures increased by 0.3% to $4.4445 per pound, marking their strongest levels since May 2022. Aluminum futures surged by 1.3% to $2,651.0 per ton, reaching their highest level since January 2023.
