Israel-Iran tensions fuel gold to near two-month high as investors seek safe haven
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“We now expect a gold price of US$3,400 per troy ounce by the end of (2025),” Commerzbank said in a note.
PHOTO: REUTERS
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NEW YORK – Gold prices rose to a near two-month high on June 13, driven by safe-haven demand as Israel’s strikes on Iran escalated tensions in the Middle East.
Spot gold was up 1.1 per cent at US$3,419.69 an ounce as of 1125 GMT (7.25pm Singapore time), after hitting its highest point since April 22 earlier in the session. Bullion has gained more than 3.3 per cent so far this week.
US gold futures gained 1.1 per cent to US$3,439.90.
The Middle East was thrust into renewed conflict after Israel launched strikes against Iran
Iran launched about 100 drones towards Israeli territory in retaliation.
The rising tensions add another layer of market uncertainty, coming on the heels of US President Donald Trump’s trade policies.
“For now, the attacks add to the bullish mood in the gold market… With the situation being highly in flux, it is too early to tell whether this shock will lastingly lift prices,” said Mr Carsten Menke, an analyst at Julius Baer.
“Should there be disruptions to oil supplies – either directly due to attacks or indirectly due to politically imposed measures – or should the conflict spread in the region, then gold could show a more lasting reaction,” he said.
Gold is used as a safe investment during times of geopolitical and economic uncertainty. It also tends to thrive in a low-interest-rate environment.
“We now expect a gold price of US$3,400 per troy ounce by the end of (2025) and US$3,600 by the end of (2026),” Commerzbank said in a note.
Demand for physical gold weakened across major Asian hubs this week, as soaring prices deterred buyers, with rates in India surging past the psychologically key 100,000 rupee mark.
Spot silver was down 0.5 per cent at US$36.2 per ounce, platinum fell 2.7 per cent to US$1,259.94, and palladium fell 0.4 per cent to US$1,051.68. All three metals were set for weekly gains. REUTERS
