FX.co ★ Gold Climbs on Major Escalation in Middle East

Gold prices soared past $3,400 on Friday, reaching their highest levels in over a month, as investors flocked to the precious metal for security amid rising geopolitical tensions and growing economic uncertainties. This surge followed Israel's preemptive strike against Iran, stoking fears of expanded conflict in the Middle East. Israeli Defense Minister Israel Katz announced a special state of emergency, cautioning about an impending missile and drone assault on Israeli civilians. The appeal of gold as a safe-haven asset was bolstered by increasing uncertainties surrounding U.S. trade policies. President Donald Trump threatened unilateral tariffs to exert pressure on trade partners, though Treasury Secretary Scott Bessent indicated that the prevailing 90-day tariff suspension might be prolonged. On the economic spectrum, recent reports showing weaker-than-expected U.S. consumer and producer inflation figures have elevated anticipations for further rate cuts by the Federal Reserve this year, enhancing the allure of non-yielding assets like gold.