Gold prices surged in Asian trading on Friday, nearing record highs, as reports of Israeli strikes on Iran heightened demand for safe-haven assets amid escalating tensions in the Middle East.
Spot gold climbed as high as $2,417.79 per ounce, while gold futures expiring in June reached $2,433.0 per ounce. Spot prices hovered just below the record peak of $2,430.96 per ounce reached last week.
Reports of explosions across Iran, Syria, and Iraq, including in the vicinity of Iranian nuclear facilities near Isfahan, raised concerns about a potential escalation in the conflict between Iran and Israel. Iran had previously warned against attacks on its nuclear sites, further fueling geopolitical uncertainty.
The safe-haven appeal of gold was bolstered by fears of a deepening conflict in the Middle East, driving a rush into the precious metal despite recent warnings about prolonged U.S. interest rate hikes. Despite a sharp rise in the dollar following the news, gold prices remained resilient.
The surge in gold prices positioned the precious metal for significant weekly gains, with spot prices up approximately 3% over the past seven days. This marked the fourth consecutive week of gains for gold, reflecting sustained safe-haven demand amid worsening geopolitical conditions in the region.
Other precious metals also rallied on Friday, with platinum futures climbing 0.9% to $958.10 per ounce and silver futures rising 1.1% to $28.70 per ounce.
In the industrial metals sector, copper and aluminum prices reached new highs in 2024, driven by expectations of tighter supply following intensified U.S. sanctions on Russian metal exports. Three-month copper futures rose to $9,799.0 per ton, while aluminum futures climbed to $2,651.0 per ton, their highest levels since January 2023.