During the Asian session on Friday, the price of gold soared to nearly $2,410 per troy ounce, bolstered by escalating geopolitical tensions in the Middle East. The surge in the safe-haven yellow metal comes in response to reports from ABC News confirming Israeli missile strikes on a site in Iran, intensifying risk aversion across global financial markets.
Reports from Iran’s Fars News Agency, as cited by Reuters, indicate that locals observed explosions at the central Isfahan airport. However, the cause of these explosions remains shrouded in mystery, with ongoing investigations aimed at unraveling the exact details of the incident.
On the currency front, the US Dollar displayed strength following hawkish statements from Federal Reserve (Fed) officials on Thursday. This resulted in a surge in US Treasury yields and the Greenback, thereby dampening the upward momentum of non-yielding assets like gold. The appreciation of the USD makes bullion more expensive for holders of other currencies.
Atlanta Fed President Raphael Bostic underscored concerns over excessively high US inflation levels, emphasizing the Fed’s ongoing efforts to address inflationary pressures. Meanwhile, New York Fed President John Williams reiterated the central bank‘s commitment to data-driven decision-making and indicated no immediate plans for interest rate cuts.
