Gold prices are poised to close the week at an all-time high, surging past US$3,430 per ounce, driven by escalating geopolitical tensions in the Middle East. Reports of Israeli airstrikes targeting Iran’s nuclear facilities have reignited fears of a broader conflict, propelling the precious metal’s value as investors flock to safe-haven assets. With turmoil showing no signs of decreasing, gold’s bullish momentum continues to captivate markets, and investors are urged to stay vigilant as events unfold over the weekend.
The latest surge comes on the heels of breaking news that the Israel Defense Forces (IDF) conducted strikes on dozens of military targets in Iran, including sites linked to its nuclear program. According to reports, the attacks have heightened concerns about potential Iranian retaliation, further destabilising an already volatile region. Gold, traditionally a refuge during times of uncertainty, has responded with a sharp 1% climb to US$3,435 per ounce, nearing its recent record highs.
“Geopolitical risks are driving gold’s rally,” said Natasha Kaneva, head of Global Commodities Strategy at J.P. Morgan. “The combination of Middle East instability and ongoing trade uncertainties is reinforcing gold’s appeal as a hedge.” J.P. Morgan’s latest forecast projects gold prices averaging US$3,675 per ounce by Q4 2025, with potential to reach US$4,000 by mid-2026 if tensions persist.
This week’s gains mark gold’s sixth consecutive week of rises, a streak fuelled by safe-haven demand and a weakening US dollar following Moody’s downgrade of the US sovereign credit rating. Despite a strong dollar index hitting a five-month high, gold has defied traditional headwinds, underscoring the intensity of investor anxiety.
Silver, too, has joined the rally, climbing to US$36.30 per ounce, supported by the same geopolitical drivers and a bullish long-term outlook due to supply shortages.
The prospect of Iranian retaliation or further escalation could push gold prices even higher, with some analysts projecting a near-term target of US$3,480 to US$3,500 per ounce.
As the Middle East remains a powder keg, gold’s allure as a safe-haven asset is undeniable. Investors are urged to watch developments closely over the weekend. Whether prices soar to new heights or face a correction, one thing is clear: gold’s role as a bedrock of stability in turbulent times is stronger than ever. If you want to act over the weekend, buying Gold Standard on Coinspot over the weekend remains the best way to ensure you are ahead of those in the market waiting for Monday mornings market open.
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