Gold Hits Record Amid Israel-Iran Conflict

Gold prices surged to record highs after Israel’s military strikes on Iranian nuclear sites triggered fears of a broader Middle East conflict and a rush to safe-haven assets. Spot gold neared $3,450 an ounce internationally, while futures set new highs in Japan and India, with Tokyo Exchange prices exceeding 16,000 yen per gram and Indian benchmarks topping ₹1 lakh per 10 grams. Expectations of US Federal Reserve rate cuts and a weakening dollar further supported gold’s rally. The geopolitical escalation also pushed oil prices higher and caused declines in global stock markets, while Bitcoin and other cryptocurrencies saw steep losses. Central banks increased their gold reserves, making gold the world’s second-largest reserve asset after the US dollar, surpassing the euro in 2024. Analysts warn that gold prices could remain elevated if conflict continues, but a diplomatic resolution may lead to a pullback.