Bullion gains 3.5% this week
Spot gold rises 1.3%
Investors seek safe assets
Gold prices climbed on Friday to their highest point in more than a month, on track for a weekly gain, as investors sought haven assets after Israel’s strike on Iran heightened Middle East tensions.
Spot gold was up 1.3 percent at $3,428.28 an ounce as of 01:34 GMT after hitting its highest level since May 7 earlier in the session. Bullion has gained more than 3.5 percent so far this week.
US gold futures gained 1.4 percent to $3,449.60.
Geopolitical tensions escalated after Israel launched a major attack against Iran. The US has been attempting to halt Iran’s production of nuclear material.
“This latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now, with investors making a play towards safe-haven assets in response,” said Tim Waterer, chief market analyst at KCM Trade.
Israel declared a state of emergency, citing expected missile and drone attacks from Tehran, and the US military is preparing for various contingencies in the Middle East, including potential assistance with evacuating American civilians, a US official told Reuters on condition of anonymity.
“Gold surged past resistance around the $3400 mark on news of the airstrikes, and further upside could be in store should the escalation continue,” Waterer said.
Elsewhere, spot silver edged down 0.1 percent at $36.33 per ounce, platinum fell 0.8 percent to $1,285.21, while palladium was steady at $1,055.21. All three metals were headed for a weekly gain.
