Traders pile into safe-haven assets after Israel’s strike on Iran heightens tension
13 June 2025 - 07:21
byAnmol Choubey
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Bengaluru — Gold prices climbed to their highest point in nearly two months on Friday, and were on track for a weekly gain, as investors flocked to safe-haven assets after Israel’s strike on Iran heightened Middle East tension.
Spot gold was up 1.3% at $3,427.36/oz by 3.32am GMT, after hitting its highest since April 22 earlier in the session. Bullion has gained more than 3.5% so far this week. US gold futures gained 1.4% to $3,448.70.
Geopolitical tension escalated after Israel targeted Iran’s nuclear facilities, as tension mounted over US efforts to halt Iran’s production of atomic bomb materials.
“This latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now, with investors making a play towards safe-haven assets in response,” said Tim Waterer, chief market analyst at KCM Trade.
Israel declared a state of emergency, citing expected missile and drone strikes from Tehran, and the US military was preparing for various contingencies in the Middle East, including potential assistance with evacuating American civilians, a US official told Reuters on condition of anonymity.
“Gold surged past resistance around $3,400 on news of the air strikes, and further upside could be in-store should the escalation continue,” Waterer said.
Signalling a cooling US labour market and subdued inflation pressures, new applications for unemployment benefits held at an eight-month high last week, while slowing domestic demand helped restrain producer prices in May.
The data, released a day after the labour department reported a moderate rise in consumer prices in May, bolstered the expectation of an earlier rate cut.
Traders are now expecting a Federal Reserve interest rate cut of 55 basis points by the year-end, starting in September rather than October as previously anticipated.
Elsewhere, spot silver fell 0.4% at $36.24/oz, platinum lost 1% at $1,283 and palladium shed 0.5% to $1,050.74. All three metals were set for weekly gains.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Middle East tension pushes gold to two-month high
Traders pile into safe-haven assets after Israel’s strike on Iran heightens tension
Bengaluru — Gold prices climbed to their highest point in nearly two months on Friday, and were on track for a weekly gain, as investors flocked to safe-haven assets after Israel’s strike on Iran heightened Middle East tension.
Spot gold was up 1.3% at $3,427.36/oz by 3.32am GMT, after hitting its highest since April 22 earlier in the session. Bullion has gained more than 3.5% so far this week. US gold futures gained 1.4% to $3,448.70.
Geopolitical tension escalated after Israel targeted Iran’s nuclear facilities, as tension mounted over US efforts to halt Iran’s production of atomic bomb materials.
“This latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now, with investors making a play towards safe-haven assets in response,” said Tim Waterer, chief market analyst at KCM Trade.
Israel declared a state of emergency, citing expected missile and drone strikes from Tehran, and the US military was preparing for various contingencies in the Middle East, including potential assistance with evacuating American civilians, a US official told Reuters on condition of anonymity.
“Gold surged past resistance around $3,400 on news of the air strikes, and further upside could be in-store should the escalation continue,” Waterer said.
Signalling a cooling US labour market and subdued inflation pressures, new applications for unemployment benefits held at an eight-month high last week, while slowing domestic demand helped restrain producer prices in May.
The data, released a day after the labour department reported a moderate rise in consumer prices in May, bolstered the expectation of an earlier rate cut.
Traders are now expecting a Federal Reserve interest rate cut of 55 basis points by the year-end, starting in September rather than October as previously anticipated.
Elsewhere, spot silver fell 0.4% at $36.24/oz, platinum lost 1% at $1,283 and palladium shed 0.5% to $1,050.74. All three metals were set for weekly gains.
Reuters
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