Gold surges more than 2%, approaching $5,400 following US and Israeli strikes on Iran

Gold Surges Amid Escalating Middle East Tensions

At the beginning of the week, gold prices soared as anticipated, with investors flocking to this traditional safe haven in response to ongoing military actions by the US and Israel against Iran.

The precious metal kicked off trading with a strong upward gap of approximately $17, quickly climbing toward the $5,400 mark. This surge was fueled by Asian market participants reacting to recent developments in the Middle East, prompting a rush into gold for protection.

Currently, gold has advanced by about 1.5% for the day, hovering near $5,350. Market watchers remain attentive to the evolving conflict, trying to assess its potential duration and impact.

Meanwhile, Iran’s decision to halt oil exports through the Strait of Hormuz has sent oil prices higher, intensifying inflation concerns. This scenario further enhances gold’s appeal as a popular hedge against rising inflation.