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Gold Posts Weekly Gains as Israel-Iran Tensions Escalate
Gold Prices Climb for Second Straight Week
Gold extended its weekly gains, marking a second consecutive week of upward movement, supported by intensifying geopolitical risks in the Middle East—especially rising tensions between Israel and Iran—as well as a decline in the U.S. dollar.
Spot gold ended Friday’s session up 1.2%, closing at $2,333.88 per ounce, while U.S. gold futures climbed 1.3% to settle at $2,349.10.
Geopolitical Uncertainty Drives Safe-Haven Demand
Growing fears over a potential escalation in the conflict between Israel and Iran have led investors to seek safety in gold, traditionally viewed as a hedge against geopolitical instability and market volatility.
Historically, gold demand surges during times of political uncertainty, as it is considered a reliable store of value and a shield against inflation and financial turbulence.
Weaker Dollar Supports Gold Prices
The decline in the U.S. dollar further boosted gold prices, making the precious metal more attractive to holders of other currencies.
Markets are now focused on key U.S. economic indicators due next week, particularly the Consumer Price Index (CPI) and the Federal Reserve’s upcoming policy decision. Analysts widely expect interest rates to remain unchanged, which may continue to support gold as a non-yielding asset.
Weekly Performance: Gold Holds Strong Despite Volatility
Despite midweek fluctuations, gold ended the week with a gain of approximately 1%, underpinned by a combination of geopolitical risk, currency movement, and monetary policy expectations.
