Gold and crude oil prices rose after Israeli airstrikes targeted Iran’s nuclear facilities and military leadership, fuelling fears of wider conflict in the Middle East.
In early trading, the yellow metal was up 1.3% at $3,446.20, while Brent jumped 6% to $70.59.
Markets reacted to reports that top Iranian military figures, including the head of the Revolutionary Guard, were killed. Iran has vowed a forceful response, increasing geopolitical risk and supporting demand for gold as a haven.
The gains for gold also reflect expectations of US interest rate cuts, following softer inflation and employment data. Investors are also weighing strong central bank demand and broader concerns over global tensions, including in Ukraine and with US trade policy.
Analysts say the potential for Iranian retaliation, especially against US interests, adds to gold’s appeal as a hedge. Silver also rose, while platinum and palladium prices fell.