Gold jumps 2% as escalated US-Israel conflict with Iran spurs haven rush

Gold climbed more than 2 per cent in Asian trading as investors sought haven assets after US and Israeli strikes on Iran killed Supreme Leader Ali Khamenei, escalating tensions across the Middle East.

Spot bullion rose as much as 2 per cent to $5,380.55 an ounce by (06:33 GMT), after touching its highest level since late January. US gold futures advanced 2.8 per cent to $5,391.46.

The escalation — including fresh Israeli strikes on Tehran and Iranian missile retaliation against Israeli territory and US bases in the Gulf — spurred a broader risk-off move, with equities falling and oil surging on concerns about potential disruptions through the Strait of Hormuz.

“A regional spillover or disruption to energy supplies would materially boost gold through higher oil prices, increased inflation expectations and contained real yields,” analysts at ING Group said.

Michael Brown, senior research strategist at Pepperstone, flagged $5,400 an ounce as an immediate resistance level, with scope to retest January’s record near $5,595. He said haven inflows and central-bank demand could push prices toward $6,000 by year-end.

Gold is up nearly 25 per cent this year, supported by geopolitical risks and expectations of Federal Reserve easing. Silver gained 1.3 per cent, while platinum rose almost 1 per cent. Copper on the London Metal Exchange edged higher.

Attribution: Investing.com