Gold continues its gains in morning Asian trading
Gold rises to 7-week high amid rising geopolitical tensions
Gold prices recorded a significant rise during Friday's trading, exceeding the level of 3444 dollars per ounce, reaching their highest levels in more than 7 weeks, as investors turned to safe assets in light of escalating political tensions and global economic instability.
Regional tensions drive gold demand
This strong rise in gold came after a sharp escalation in the situation between Israel and Iran, where Israel launched a large-scale military strike targeting the Iranian nuclear program, which led to the destruction of dozens of facilities and the death of a number of Iranian military leaders and scientists, including the chief of staff of the Iranian army and leaders of the Revolutionary Guard.
These developments led to a wave of apprehension in world markets, as investors turned to gold as a traditional safe haven in times of crisis.
Iran has also announced its intention to respond strongly to the Israeli attack, recently launching more than 100 air marches towards Israel, with the expectation of using ballistic missiles shortly.
The position of the United States and its impact on the markets
For its part, the United States stressed that it did not participate in the Israeli strikes, but is ready to support Israel defensively.
US President Donald Trump also stated that Iran cannot have a nuclear weapon, expressing hope for a return to negotiations.
In response, the spokesman of the Iranian military threatened that the United States and Israel would pay for the attacks, which further intensified fears of an escalation of the conflict in the region.
Gold price forecasts
In this tense atmosphere, analysts expect gold to continue its ascent towards higher levels, especially if the crisis between Israel and Iran worsens.
However, after gold reaches USD 3,444, the yellow metal may experience some short-term bearish corrections before resuming its upward trajectory and testing new peaks.
Gold remains one of the most important financial assets that investors turn to in times of crisis, which makes it a strong indicator of the risk situation in global markets.
