U.S.-Israeli Strikes Send Gold Soaring Past $5,380 Amid Escalating Middle East Fears

This escalation in the Middle East has heightened global uncertainty and fears of a wider conflict, prompting investors to seek safe-haven assets like gold. Spot gold gained 2% to $5,383.49, while U.S. gold futures rose 2.9% to $5,399.70.

The conflict has also disrupted regional air travel and the passage of oil tankers through the Strait of Hormuz, with Iran retaliating against Gulf cities and Israel expanding its assault to include Hezbollah militants in Lebanon. Analysts note that the increased volatility in financial markets and ongoing geopolitical tensions are fueling a bullish sentiment for gold, building on its significant gains earlier in the year driven by central bank buying and ETF inflows.