Gold prices rise on Middle East tension, sending shockwaves through global markets. Investors rushed toward safe-haven metals after reports emerged that Israel had bombed Iran’s only functioning nuclear power plant. This strike marked a major escalation in the ongoing conflict.
At 1100 GMT, spot gold rose 0.2% to $3,374.49 an ounce. Meanwhile, U.S. gold futures fell 0.5% to $3,391.00. This divergence highlights market uncertainty. Investors remain cautious while watching developments in the Middle East and U.S. economic policy.
Fawad Razaqzada, a market analyst at City Index and FOREX, noted the connection. He explained that gold demand is climbing due to heightened geopolitical fears. According to him, “haven flows” are rising rapidly, and it’s no surprise under the current circumstances.
In addition to the conflict, the U.S. Federal Reserve also influenced markets. On Wednesday, the Fed decided to keep interest rates unchanged. Though officials still expect rate cuts this year, they now predict a slower pace. This cautious stance reflects economic concerns, particularly inflation and rising import tariffs.
Fed Chair Jerome Powell warned about “meaningful” inflation risks ahead. His remarks added more fuel to investor fears. As uncertainty grows, gold prices rise on Middle East tension and economic signals from the U.S.
In parallel, platinum reached a 10-year high earlier in the day. It then dipped 2.5%, settling at $1,289.71 an ounce. Analysts link the platinum surge to several key factors. These include increased Chinese imports, high lease rates, and tight supply. Tim Waterer, Chief Market Analyst at KCM Trade, said the market still shows room for further gains.
Silver and palladium moved in the opposite direction. Palladium dropped 1.1% to $1,036.74, while silver slipped 1.2% to $36.31. Despite those declines, investor attention remains fixed on gold and platinum.
Gold prices rise on Middle East tension, economic pressure, and global investor uncertainty. With markets rattled and inflation risks looming, precious metals are once again in the spotlight.
For more updates, visit DC Brief.
