Gold climbed as high as $3674.55/oz on Tuesday, propelled by escalating geopolitical tensions following Israeli military operations against Hamas leadership.
Reports emerged of targeted strikes conducted by the Israel Defense Forces (IDF) and intelligence services against senior Hamas commanders, on Tuesday prompting a bout of market volatility.
The IDF operation, reportedly executed in Doha, prompted sharp diplomatic condemnation from Qatari officials who denounced the action as a flagrant breach of international legal standards.
Gold has surged by over 38% year-to-date, reflecting persistent inflationary pressures and mounting global uncertainties. Currency markets mirrored this risk-averse sentiment, with the Japanese yen and Swiss franc finding a bid against major trading partners.
Gold came within touching distance of a fresh record high at $3,700/oz. in early US trade before paring today’s gains. Any bout of profit-taking in the precious metal (gold has posted 11 positive days in the last two weeks) will likely find renewed buying interest, especially with the Federal Reserve expected to cut interest rates next week.
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