Gold nears record high

Gold climbs to record high after Iran’s attack on Israel. Gold rose to near-record levels after Iran’s weekend attack on Israel boosted demand for the safe-haven asset. Bullion rose as much as 1.2% as the Middle East conflict entered a dangerous new phase. Iran launched more than 300 drones and missiles at Israel, but most were intercepted and no deaths were reported. The precious metal topped $2,400 an ounce on Friday but closed lower as technical indicators showed the rally was too hot and investors liquidated positions. Recent developments in the Middle East have reignited fears of a possible Israeli retaliation, potentially supporting gold in the near term. Rising tensions in the Middle East are “a reason to buy gold in itself,” said Chris Weston, head of research at Pepperstone Group. “There’s a pretty big geopolitical premium that moves are priced into, and mid-cap gold purchases are likely to be higher on the way forward,” Weston said. Gold has risen nearly 20% since mid-February in a rally that has surprised many investors. The Federal Reserve’s approach to a much-anticipated milestone, strong central bank purchases and rising demand from Chinese consumers were the main factors, along with rising geopolitical risk in the Middle East and Ukraine. Spot gold rose 0.4% to $2,354.62 an ounce as of 8:51 a.m. Singapore time after rising 0.6% last week. The Bloomberg Dollar Spot Index was flat after rising 1.3% last week, its biggest gain since September 2022. Silver rose, while platinum and palladium fell.