Gold surged 1.35% to an all-time high of $3,446 per ounce on Friday, June 13, as investors flocked to safe-haven assets amid the escalating Israel-Iran conflict. Iran’s missile strikes on Tel Aviv and Israel’s attacks on Iranian nuclear and oil facilities have unsettled markets, driving Brent crude prices up over 10% and raising fears of a wider regional conflict.
The rally in gold, up 5% this month, is fueled by geopolitical risks and uncertainty over U.S. tariff policies under President Trump. Reuters reported that U.S. investors are reallocating portfolios to hedge against market disruptions, with the U.S. dollar also strengthening. The 10-year Treasury yield climbed to 4.5%, pressuring equities, with the S&P 500 falling 0.53% to 6,013.12.
Analysts expect gold’s upward trajectory to persist if tensions continue. “Gold thrives in chaos,” said a Goldman Sachs strategist, emphasizing its role as a hedge against inflation and instability. JPMorgan forecasts gold could reach $3,600 by Q3 2025 if the conflict disrupts oil supplies further, citing Iran’s role in global energy markets. However, a swift de-escalation could limit gains, with technical resistance at $3,500 likely to challenge bulls. “Any diplomatic breakthrough could see profit-taking,” warned a Bank of America analyst, noting that central bank buying, which drove 40% of 2024’s demand, may slow if stability returns.
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