GOLD advanced to near a record after Iran’s unprecedented attack on Israel over the weekend drove demand for haven assets.
Bullion rose as much as 1.2% as the conflict in the Middle East entered a dangerous new phase, before paring around half of that gain. The Islamic Republic fired more than 300 drones and missiles against Israel, though most were intercepted and there were no fatalities reported.
The precious metal broke through $2 400 an ounce on Friday, but closed the session lower as technical indicators indicated its rally had run too hot and investors liquidated positions. The latest developments in the Middle East rekindled the flight to safety, with fears over a potential retaliation by Israel likely to support gold in the near term.
The escalating tensions in the Middle East are “a reason in itself to buy gold,” said Chris Weston, head of research at Pepperstone Group “There’s a sizable geopolitical premium being priced into moves,” he said, adding that the medium-term path will likely be higher. – moneyweb