Gold rose for a fifth consecutive session, climbing as much as 0.8% to exceed US$5360 an ounce as escalating conflict in the Middle East upends global energy markets and drives investors toward safe-haven assets.
The rally, which has seen bullion add more than 3% over the previous four sessions, intensified following Israel’s announcement of a “wave of strikes” targeting Iranian command centres.
President Donald Trump further galvanised market volatility by stating the US would continue its military offensive indefinitely.
With Tehran retaliating against oil and gas infrastructure and threatening shipping in the strategic Strait of Hormuz, the resulting spike in energy prices has reignited global inflation fears.
The geopolitical instability has caused a slump in US Treasuries, increasing the likelihood that the Federal Reserve will maintain higher interest rates for a longer period.