Gold Prices Surge Amid US-Israel-Iran Conflict Hitting Highs

For the fifth consecutive session, gold prices have risen as investors turn to safe-haven assets amidst escalating tensions between the U.S., Israel, and Iran, fearing the conflict may expand into a prolonged regional war. Spot gold increased by 0.7% to $5,362.90 per ounce by Tuesday morning.

The ongoing conflict has notably impacted global oil trade as reported by Iranian authorities who announced the closure of the Strait of Hormuz, a strategic chokepoint. This move, threatening to disrupt a fifth of the global oil supply, has intensified fears and driven crude oil prices up.

The dollar remains strong, typically making gold expensive for those holding other currencies, yet in uncertain times such as this, both gold and the dollar are attractive to risk-averse investors. Gold continues to shimmer in light of rising inflation concerns and geopolitical instability.