Gold prices jump to two-week high on dollar dip, Israel-Iran tensions – CNBC TV18
Safe-Haven Demand Rises Amid Escalating Middle East Tensions
Gold prices jumped sharply following Israeli airstrikes on Iran’s nuclear sites, triggering fresh geopolitical fears and boosting demand for safe-haven assets. The escalating conflict in the Middle East has heightened investor uncertainty, sending gold prices soaring by 1.6%, pushing it closer to its record high.
At 10:49 a.m. Singapore time, spot gold was trading at $3,437.60 an ounce, just $60 shy of its all-time high of $3,500.10 reached in April 2025.
Why Gold Prices Are Rising
The surge in gold value comes as Israel launched a targeted military operation against Iran’s nuclear infrastructure and top military leadership. Israeli Prime Minister Benjamin Netanyahu confirmed that the campaign will continue until the perceived threat is eliminated.
According to Iranian state media, Hossein Salami, commander of the Islamic Revolutionary Guard Corps, was killed in the strikes. The report also suggests other nuclear scientists and senior Iranian military officials were targeted.
Iran has pledged a “harsh” retaliation, warning both Israel and the United States—although Washington has denied involvement in the strikes.
Market Reactions and Expert Insights
The rising tension has triggered strong safe-haven flows into gold. Analysts believe investors are seeking refuge as markets digest the possibility of regional war and further global instability.
“The risk of Iranian retaliation, including threats to US military bases, is driving demand for gold,” said Charu Chanana, strategist at Saxo Capital Markets. “This is not just a hedge against war—it’s also protection against potential inflation and market volatility.”
Additionally, recent U.S. economic data has strengthened the case for lower interest rates later this year:
- Producer Price Index (PPI) in May remained subdued
- Jobless claims hit their highest level since 2021
This economic backdrop further supports gold’s upward momentum, as lower interest rates make non-yielding assets like gold more attractive.
Gold’s Strong Performance in 2025
So far in 2025, gold has surged nearly 30%, driven by a combination of:
- Global geopolitical risks (Iran, Ukraine, etc.)
- Economic uncertainty in the U.S.
- High demand from central banks and sovereign wealth funds
- Continued concerns about former President Donald Trump’s trade policies
Meanwhile, other precious metals showed mixed movements:
- Silver prices rose
- Platinum and palladium declined
- The Bloomberg Dollar Spot Index gained 0.2%
Next Steps in Iran-US Diplomacy
Despite rising tensions, U.S. and Iranian officials are scheduled to meet in Oman on Sunday to discuss Iran’s nuclear program. However, Trump recently stated he’s skeptical about reaching any agreement soon.
The future of Middle East diplomacy remains uncertain. Any developments from these talks may further influence gold prices, oil markets, and broader investor sentiment.
Key Takeaways
- Gold prices rose 1.6% following Israeli airstrikes on Iran
- Tensions in the Middle East are driving safe-haven investments
- Inflation data and Fed rate expectations also support gold’s rally
- Investors remain cautious amid geopolitical risks and market volatility
- Upcoming nuclear talks between the U.S. and Iran may shift market dynamics
Conclusion
As tensions escalate between Israel and Iran, investors are turning to gold as a safe-haven asset amid fears of a wider conflict. With the global economic outlook also uncertain, gold’s appeal continues to grow. Keep a close watch on upcoming diplomatic talks and market signals, as they may drive further fluctuations in gold and other key commodities.
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