Gold Soars on Israel-Iran Tensions, Markets React

Gold prices surged to nearly $3,450 per ounce as investors moved to safe-haven assets after Israeli airstrikes on Iranian nuclear and military targets caused fears of a wider Middle East conflict and sparked market volatility. Iran retaliated with the launch of about 100 drones, leading to sharp sell-offs in global stock markets and a spike in crude oil prices. Safe-haven demand also boosted the U.S. dollar, Japanese yen, and Swiss franc, while cryptocurrencies like Bitcoin fell steeply, challenging their role as alternative safe havens. Weaker-than-expected U.S. inflation data increased expectations of a Federal Reserve rate cut, further supporting gold prices. U.S. defense stocks rose on expectations of sustained geopolitical risks. Analysts warn that while gold may see further gains if tensions escalate or oil supplies are disrupted, physical demand in major Asian markets has softened due to soaring prices.