Gold prices rose on Friday due to a risk aversion in financial markets following media reports of bombings in Iran, which heightened fears of a broader regional conflict and increased gold's appeal as a safe haven. By 0429 GMT, spot gold had increased by 0.3 percent to $2,386.05 per ounce after briefly jumping to $2,417.59 earlier in the session, hovering near its all-time high of $2,431.29 set last Friday. The yellow metal is on course to achieve gains for the fifth consecutive week, having risen nearly two percent since the beginning of the week. U.S. gold futures climbed 0.1 percent to $2,401.20.
Kyle Rodda, a financial market analyst at Capital.com, commented after reports of Israeli attacks on Iran, stating, "The market is now waiting for more information about the nature of the attack, the reasons behind it, and what the response will be." He added, "Gold is no longer a trade influenced by monetary policy; it is a trade affected by geopolitical conditions."
Three informed sources indicated that Israel attacked Iran, while early on Friday, Iranian state media reported that the country's forces had destroyed drones, following days after Tehran conducted a retaliatory strike with drones and missiles against Israel.
As for other precious metals, silver in spot transactions rose 0.2 percent to $28.28 per ounce and is on track for weekly gains. Platinum increased by 0.6 percent to $938.39, while palladium remained stable at $1,023.09. Both metals are set to incur weekly losses.
