Gold surge continues as Middle East tensions intensify

Gold alloys

Gold prices continued to grow today, Aug. 8, fueled by increasing tensions in the Middle East and risks of military escalation between Iran and Israel, alongside the positive prospect of US monetary easing.

Bullion for December delivery climbed by 0.16%, or $3.90, to $2,436.30 per ounce at 11:18 am Makkah time, with spot prices also up 0.59% to $2,397.05 an ounce.

Elsewhere, silver futures for September delivery remained flat at $26.94 per ounce, while platinum spot prices jumped 1.07% to $927.53 an ounce.

The spike in gold prices came on the back of a 0.25% pullback in the US dollar index, which gauges the greenback's strength against a basket of six currencies, to 102.94 points.

Israel is on high alert for a potential military response from Iran after being accused of the July 31 assassination of Hamas political chief Ismail Haniyeh in Tehran after attending the swearing-in ceremony of Iran’s new president.

In a phone call on Wednesday, Iranian President Masoud Pezeshkian told his French counterpart Emmanuel Macron that Tehran “will never remain silent in the face of aggression against its interests and security,” Iranian state media reported.

Today, markets are awaiting the release of US jobless claims data amid expectations of a decline of 4,000 applications during the past week. Eyes are also on President of Federal Reserve Bank of Richmond Thomas Barkin’s speech during a symposium hosted by the National Association for Business Economics.