FX.co ★ Gold Set for a Sharp Advance

Gold prices are set to jump when trading resumes Sunday night, driven by renewed safe-haven demand after coordinated US and Israeli strikes on Iran sharply escalated tensions in the Middle East. In response, Iran moved to restrict traffic through the strategic Strait of Hormuz — a critical chokepoint for roughly one-fifth of global oil supply and significant natural gas shipments — and launched attacks across neighbouring states, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria. Bullion was already gaining momentum, trading at one-month highs of $5,278 on Friday and approaching the all-time peak of $5,500 reached at the end of January, as investors positioned for a possible attack and weighed aggressive US trade policies against persistently elevated inflation.