Gold prices rose more than 1 percent today, Tuesday, due to the demand for safe havens with escalating fears of an all-out war in the Middle East after Iran launched ballistic missiles at… Israel.
And rose gold In instant transactions, one percent to $2,661.63 per ounce, by 1740 GMT, after recording the highest level ever at $2,685.42 last Thursday. US gold futures settled at $2,690.3.
Brent crude prices also rose by about 5 percent and exceeded the level of $75 per barrel, before paring some of their gains, with increasing concerns about supplies coming from the region.
US stock market indices also fell sharply, and the Nasdaq index fell by more than 1 percent.
In the context of the repercussions of the Iranian attack, a region in the region announced the closure of its airspace, including Jordan, Lebanon, Iraq, and Israel. Kuwait Airways also announced the change of the route of some of its flights as a result of the Iranian missile attack.
Iran launched a barrage of ballistic missiles at Israel on Tuesday in response to the Israeli campaign against the Lebanese Hezbollah group, an ally of Tehran.
Jim Wyckoff, chief market analyst at Kitco Metals, told Reuters: “If there are large human casualties in Israel, we may see an all-out war in the Middle East, and this is what I think traders fear now,” which may prompt increased demand for safe havens.
Gold is a safe investment during times of political and financial uncertainty.
At the same time, US ten-year bond yields have fallen, making the non-yielding yellow bullion more attractive
Yesterday, Monday, gold recorded its worst daily performance in more than four weeks after Federal Reserve Chairman Jerome Powell indicated that the US central bank is likely to seek to reduce interest rates by a quarter of a percentage point in the future.
This week, markets are awaiting a series of data related to employment and non-farm payrolls in the United States, which is expected to shed light on the strength of the American labor market.
As for other precious metals, silver rose in spot transactions by 0.7 percent to $31.36 per ounce. Platinum increased 1.2 percent to $987.70. Palladium fell 0.6 percent to $994.50.
