During the Asian trading session on Friday, the price of gold surged to nearly $2,410 per troy ounce. This significant rise in the value of the safe-haven yellow metal was attributed to a wave of risk aversion sweeping through financial markets, triggered by reports from ABC News confirming Israeli missile strikes on a site in Iran, further escalating tensions in the Middle East.
According to Reuters, Iran’s Fars News Agency reported explosions at the central Isfahan airport, as witnessed by locals. However, the exact cause of these explosions remains undisclosed, prompting ongoing investigations to ascertain further details of the incident.
Meanwhile, on the US Dollar front, Federal Reserve (Fed) officials delivered hawkish messages during Thursday’s session. This led to a surge in US Treasury yields and the Greenback, subsequently tempering the upward momentum of non-yielding assets such as gold. The strengthened USD renders bullion more costly for holders of other currencies.
Atlanta Fed President Raphael Bostic underscored concerns over excessively high US inflation rates and stressed the need for the Fed to make strides in addressing this issue. Additionally, New York Fed President John Williams reaffirmed the Fed’s commitment to data-driven decision-making, expressing his current stance of no immediate necessity to lower interest rates.
