XAU/USD: Gold Prices Rally to $3,440 as Traders Seek Shelter amid Israel-Iran Conflict

Precious metal acted as a safe haven after Israel hit Iran’s nuclear program, which triggered an immediate response from Tehran — “severe punishment.”

🔥 Gold Surges to $3,440 as Safe Haven Demand Spikes

• Gold prices XAUUSD jumped sharply early Friday, trading as high as $3,440 per ounce as investors rushed to safety following Israel’s massive overnight strike on Iran’s main nuclear site and military command. The risk-off move was swift and global, as the precious metal once again lived up to its reputation as the ultimate crisis hedge.
• Traders viewed the escalation — which included the killing of an Iranian top military leader — as a game-changer for geopolitical stability in the Middle East. The size and scope of the Israeli operation triggered broad-based fear of regional warfare with unpredictable consequences.
• With equity markets falling and crypto assets under pressure, gold stood out as a clear beneficiary of the growing uncertainty, and analysts say it could head higher if retaliation continues to escalate..

💥 Iran Vows “Severe Punishment”

• Israeli jets carried out a coordinated air assault involving 200 fighter planes, targeting nuclear enrichment sites and military leadership compounds overnight. One of the casualties: the head of the Islamic Revolutionary Guard Corps, a key player in Iran’s regional power projection.
• In a nationally broadcast statement, Iran’s Supreme Leader Ayatollah Ali Khamenei vowed “severe punishment” in response to the attacks. Israeli PM Netanyahu, on the other hand, said the operations will continue for “as many days” as needed.
• Iran immediately launched 100 drones toward Israeli territory in retaliation, and local officials confirmed they had already intercepted some of the incoming warfare devices outside Israeli airspace.

🗺️ US Statement: “We’re Not Involved”

• The United States quickly issued a statement denying involvement, saying, “We are not involved in strikes against Iran.” This move was seen as an attempt to preserve the remnants of recent negotiations that had faltered in the past two weeks.
• Despite Washington’s distance, the breakdown in diplomacy leaves a void in regional leadership, and markets are now pricing in greater volatility and risk premium across commodities, defense, and currency markets.
• With the potential for oil disruptions and military conflict beyond borders, gold traders are watching closely for further signals from both Tehran and Tel Aviv — but for now, the shiny metal is doing exactly what it’s meant to do: shield capital in chaos.