Gold edges up amid US military operation in Iran… dollar also stronger

Korea Economic Daily

Summary

International gold prices edged higher as safe-haven demand increased amid heightened tensions in the Middle East following a US and Israeli military operation against Iran.
Spot gold rose 0.4% to $5,297.31, while April-delivery gold futures settled 1.2% higher at $5,311.60.
The dollar index climbed 1% to 98.62, and uncertainty related to the military operation was cited as a factor supporting gold prices.

Forecast Trend Report by Period

International gold prices rose slightly on the 2nd (local time) as demand for safe-haven assets increased amid heightened tensions in the Middle East following the launch of a US and Israeli military operation against Iran.

According to Reuters, as of 1:30 p.m. ET, spot gold was up 0.4% from the previous session at $5,297.31. It had extended gains to more than 2% earlier in the session, but pared part of the advance as profit-taking emerged.

Gold futures for April delivery on the New York Mercantile Exchange also settled up 1.2% from the prior session at $5,311.60.

The dollar also strengthened against major currencies. The dollar index, which reflects the greenback’s value against six major currencies, was up 1% from the previous session at 98.62 shortly before the close of the New York stock market.

David Meger, director of metals trading at High Ridge Futures, told Reuters, “The market is now assessing whether follow-on attacks will continue for the coming weeks,” adding, “That uncertainty is a key factor supporting gold prices.”

Yonghyun Shin, Hankyung.com reporter yonghyun@hankyung.com