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Market Analysis

Gold prices surged beyond $2,400 on reports of Israeli strikes on Iran
Amos Simanungkalit · 38.1K Views

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Gold prices soared in Asian trading on Friday, nearing record highs following reports of Israeli strikes on Iran that heightened demand for safe-haven assets, particularly amidst 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 the previous week.


The focus shifted to the Iran-Israel escalation after reports of explosions across Iran, Syria, and Iraq emerged. Multiple media outlets, including Iranian news agencies, reported explosions in various locations, raising concerns, especially regarding incidents near Iranian nuclear facilities in Isfahan.


Earlier in the week, Iran had cautioned Israel against attacking its nuclear sites, even suggesting a reconsideration of its stance on nuclear weapons in such circumstances.


Gold prices experienced a surge as investors sought refuge amid fears of worsening conflict in the Middle East. Despite recent warnings about prolonged higher U.S. interest rates, gold continued to rise, unaffected by the sharp increase in the dollar following the Iran-Israel news.


Friday's gains positioned gold prices for significant weekly increases, with spot prices rising approximately 3% over the past seven days. This week marked the fourth consecutive week of gains for gold, driven by persistent safe-haven demand amid deteriorating geopolitical conditions in the Middle East.


In response to the strikes, other precious metals also saw sharp increases on Friday. Platinum futures rose by 0.9% to $958.10 per ounce, while silver futures climbed by 1.1% to $28.70 per ounce.


In the realm of industrial metals, copper and aluminum prices reached new peaks in 2024 on Friday. This surge was supported by expectations of tighter supplies following intensified U.S. sanctions on Russian metal exports. Three-month copper futures increased by 0.5% to $9,799.0 per ton, while one-month copper futures rose by 0.3% to $4.4445 per pound, marking their strongest levels since May 2022. Aluminum futures also experienced a boost, rising by 1.3% to $2,651.0 per ton, reaching their highest level since January 2023.

 

 

 


Paraphrasing text from "Investing" all rights reserved by the original author.

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