Gold rises 1% as Middle East conflict spurs safe-haven demand
- Spot gold was up 1% at $5,124.73 per ounce
- US gold futures for April delivery were up 1.1% at $5,131
- Spot silver rose 1.7% to $83.57 per ounce
Gold prices rose on Friday, rebounding from a more than 1% drop in the previous session, after investors sought the safe-haven metal as uncertainty grew over a widening Middle East conflict.
Spot gold was up 1% at $5,124.73 per ounce, as of 0255 GMT.
The metal has lost roughly 3% so far this week, set to snap a four-week winning streak, as fading rate-cut prospects and higher energy prices stoked inflation concerns.
US gold futures for April delivery were up 1.1% at $5,131.
The dollar weakened, making greenback-priced bullion less expensive for holders of other currencies.
“Geopolitical risks are still not subsiding.
In fact, there could be a risk of escalation, given the fact that the recent interview by Iranian foreign minister stating that the Iranian forces are ready for a ground invasion by the US or even Israel.
So that’s actually supporting gold price,“ said Kelvin Wong, a senior market analyst at OANDA.
On the sixth day of the war, Iran launched a series of attacks on Israel, the United Arab Emirates and Qatar.
US submarine sinks Iranian warship
US Defence Secretary Pete Hegseth and Admiral Brad Cooper, who leads US forces in the Middle East, said that the US has enough munitions to continue its bombardment indefinitely.
The US-Israeli military campaign against Iran launched on Saturday has struck targets across the country and triggered Iranian retaliation.
Global energy prices soared as the conflict disrupted supplies and shipping, prompting some major Middle Eastern producers to cut production.
Bullion, traditionally viewed as a safe-haven asset, has risen about 18% so far this year, notching successive record highs amid heightened geopolitical and economic uncertainty.
Gold prices would be volatile in the near term with key support at $5,040 level and resistance at $5,280, said Wong, adding that prices could rise up to $5,448 if the resistance is broken.
Meanwhile, US data on Thursday showed initial jobless claims unchanged last week, while layoffs dropped sharply in February.
Investors now await the US employment report for February, due later in the day.
Spot silver rose 1.7% to $83.57 per ounce.
Spot platinum gained nearly 1% to $2,141.55, while palladium rose 1.2% to $1,648.65.
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