Gold price rises as risk aversion increases following news of Israeli missiles attacking an Iranian location.
Gold prices rose to about $2,410 per troy ounce during Friday’s Asian session. The safe-haven yellow gold gains ground as risk aversion spreads throughout financial markets following ABC News’ report that Israeli missiles targeted an Iranian location, escalating Middle Eastern tensions.
Iran’s Fars News Agency reported explosions at Isfahan’s primary airport.
According to Reuters, people reported hearing explosions at Isfahan’s central airport. However, the cause is These explosions remain unknown. Investigations are underway to discover the actual nature of the occurrence.
The advances in the US dollar may hinder the ascent of gold prices.
On the US Dollar front, Federal Reserve (Fed) officials transmitted hawkish messages on Thursday, resulting in a rise in US Treasury yields and the Greenback, which slowed the upward momentum of non-yielding assets such as gold. As the US dollar strengthens, bullion becomes more expensive for holders of other currencies.
Atlanta Fed President Raphael Bostic stated that US inflation is unnecessarily high and that the Fed still needs to make progress in managing inflation. Meanwhile, New York Fed President John Williams emphasized the Fed’s commitment to data-driven decisions and stated that he does not see an immediate need to cut interest rates.
