Gold rose for a fifth straight session on Tuesday, as investors sought safe havens amid a US-Israeli air war against Iran, raising fears that the conflict could fuel a long-running regional war and deepen uncertainty.
Foundations
- Spot gold was up 1% at $5,377.21 an ounce by 0122 GMT. At the previous session, bullion hit its highest level in more than four weeks following the weekend attacks on Iran by the United States and Israel.
- U.S. gold futures for April delivery rose 1.5% to $5,391.90.
- The dollar hovered near a more than five-week high on Monday, supported by strong demand and cautious market sentiment.
- A strong greenback typically makes dollar-denominated assets such as bullion more expensive for holders of other currencies. But in crisis situations, gold trades more as a risk hedge than as a money substitute.
- Iranian media reported that a senior official of the Islamic Revolutionary Guard Corps said on Monday that the Strait of Hormuz had been closed and warned that Iran would fire on any ship that tried to pass through the strategic waters.
- It’s Iran’s most visible warning since it told shippers to block its export route on Saturday, a move that threatens to disrupt a fifth of the world’s oil supply and send oil prices sharply higher.
- US President Donald Trump said he ordered the attack on Iran to address what he described as potential threats from Tehran’s nuclear and ballistic missile programs, vowing to continue fighting if necessary, while warning that a “big wave” of more strikes could come soon, without giving specific details.
- Iran’s attack plunged the Gulf into war, killing hundreds of civilians in Iran, Israel and Lebanon, disrupting international air transport and disrupting shipping through the Strait of Hormuz.
- Silver rose 1.4 percent to $90.67 an ounce on Tuesday, after hitting a more than four-week high in the previous session.
- Spot platinum added 0.6 percent to $2,316.50 an ounce, while palladium rose 1.6 percent to $1,795.08.
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