In Asian trading on Friday, gold prices experienced a significant surge, nearing record highs as reports of Israeli strikes on Iran fueled demand for safe-haven assets, particularly amidst escalating tensions in the Middle East.
Spot gold surged to $2,417.79 an ounce, while gold futures expiring in June reached $2,433.0 an ounce, inching close to the record highs of $2,430.96 an ounce recorded last week.
Reports of explosions across Iran, Syria, and Iraq, including in the vicinity of Iranian nuclear facilities in the city of Isfahan, heightened concerns over the Iran-Israel escalation. Iran had previously warned against attacks on its nuclear sites, indicating potential repercussions.
Despite recent warnings regarding prolonged higher US interest rates, gold prices experienced a robust rally fueled by safe-haven demand amid fears of deepening conflict in the Middle East. The surge in the US dollar following the Iran-Israel news had minimal impact on gold prices.
Friday’s gains positioned gold prices for substantial weekly gains, with spot prices up approximately 3% over the past seven days, marking the fourth consecutive week of increases driven by persistent safe-haven demand amidst deteriorating geopolitical conditions in the Middle East.
In tandem with gold, other precious metals also saw significant increases following news of the strikes. Platinum futures rose by 0.9% to $958.10 an ounce, while silver futures surged by 1.1% to $28.70 an ounce.
Additionally, industrial metals displayed optimism driven by a tightening supply outlook. Copper and aluminum prices reached new peaks in 2024 on Friday, propelled by intensified US sanctions on Russian metal exports.
Three-month copper futures rose by 0.5% to $9,799.0 a ton, while one-month copper futures increased by 0.3% to $4.4445 a pound, reaching their strongest levels since May 2022. Aluminum futures climbed by 1.3% to $2,651.0 a ton, marking their highest level since January 2023.
