Quick overview

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Gold prices increased for the third consecutive day following the escalation of the conflict between Israel and Iran. This situation has led to a more risk-averse attitude in the financial markets due to concerns about the potential for further intensification.

 

Gold futures settled at $5,452 per ounce, not far from its all-time high mark. Tensions in the region heightened on Friday after Israel targeted Iran’s nuclear facilities, military installations, and high-ranking officials.

XAU/USD reached a five-week high of $3,446 but traders took profits ahead of the weekend, resulting in a slight decline to current levels.

 Israel launched a series of strikes across Iran on Friday in what may be a prolonged operation to prevent Tehran from developing an atomic weapon, claiming to have killed military commanders and hit nuclear and missile production sites.

According to US President Donald Trump, Iran was accountable for the attack as it did not comply with a US demand to restrict its nuclear program. Bullion, especially during such times, is viewed as a safe asset.

The United Nations’ nuclear watchdog adopted a resolution on Thursday accusing Iran of breaching its commitments under the nuclear non-proliferation pact, sparking an increase in tensions. Tehran responded by announcing plans to intensify its Nuclear activities, claiming that it had “no choice but to react.”

It can be used as a weapon when uranium, the primary fuel for nuclear energy, is highly enriched. Iran is still adamant that the only goal of its Nuclear program is peace.

 Trump confirmed on Wednesday that U.S. personnel are being relocated from parts of the Middle East as tensions between Israel and Iran escalated. This comes before the U.S. and Iran’s sixth round of nuclear negotiations, which have been canceled.