Gold gains on safe-haven demand as Middle East conflict widens

Gold prices climbed on Thursday as a widening conflict involving the US, Israel and Iran drove investors toward the safe-haven asset.

Spot gold was up 0.8 per cent at $5,177.33 per ounce, as of 04:35 (GMT) US gold futures for April delivery were up 1pc at $5,185.50.

“Gold benefits from the kind of geopolitical risks that we’ve seen flared up in the last few days. So (prices rose due to) a bit of a function of normalising financial conditions and a US dollar that’s pulling back from highs,” said Kyle Rodda, senior financial market analyst at Capital.com.

The dollar retreated from a more than three-month high touched earlier this week, making greenback-priced bullion less expensive for holders of other currencies.

The war widened sharply on Wednesday after a US submarine sank an Iranian warship off Sri Lanka, killing at least 80 people, and Nato air defences destroyed an Iranian ballistic missile fired towards Turkey.

The escalation came as the son of Iran’s slain supreme leader Ayatollah Ali Khamenei emerged as a frontrunner to succeed him, suggesting Tehran was not about to buckle to pressure, five days after the US and Israel launched a military campaign that has killed hundreds and convulsed global markets.

“I think this crisis is something that supports gold prices in the long run. But the uncertainty surrounding the war means we will continue to see heightened volatility until we see signs that we’ve reached peak escalation,” Capital.com’s Rodda said.

Bullion, traditionally viewed as a safe-haven asset, has risen about 20pc so far this year, notching successive record highs amid heightened global political and economic uncertainty.

Meanwhile, US President Donald Trump officially nominated former Federal Reserve Governor Kevin Warsh to be the US central bank’s next chair, putting the president one step closer to installing a rate-cut-friendly Fed chief.

Markets expect the Fed to keep interest rates steady on March 18, according to CME Group’s FedWatch tool.

Investors now await the weekly US jobless claims data, due later in the day, and the US employment report for February on Friday.

Spot silver rose 1.7pc to $84.86 per ounce. Platinum climbed 1.4pc to $2,179.48, and palladium gained 0.5pc to $1,682.85.

Gold gains 2pc as widening Middle East war fuels safe‑haven demand

Gold climbs as US-Israel strikes on Iran spark safe-haven demand

Gold extends gains as Middle East war prompts flight to safety

Is your parents’ health insurance really complete?

Allied Bank sets new benchmark in customer experience with Pakistan’s first humanoid robot

Inside Eminent: Karachi’s new house of fashion and lifestyle that’s worth the buzz

PAA says Pakistan’s airspace remains ‘completely available’ for civil aviation traffic

US Congress considers moves to curtail Trump’s war powers

US Marines fired on protesters storming consulate in Karachi, US officials say

Senior security official dismisses speculation that Pakistan could be next target after US-Israeli strikes on Iran

Pakistanis at Taftan border describe scramble to leave Iran

PCB fines Green Shirts Rs5 million each for lacklustre T20 World Cup campaign: report

Sialkot Stallionz officially change name to Multan Sultans under new management

Privatisation Commission board recommends Fauji Fertiliser’s inclusion in consortium that won PIA auction

Oil leaps 3pc on supply concerns as Iran conflict widens

Gold gains on safe-haven demand as Middle East conflict widens

KSE-100 rebounds past 157,800 in steady early trading

Trump administration keeps ‘boots on ground’ option open as Iran conflict intensifies

Power consumers to bear Rs23bn extra burden

Middle East crisis hits local industries; auto sector braces for impact

The IMF’s culpability

Global Markets Roundup: Stocks Slide On Middle East Tensions

Pakistan Roundup: Fuel Shock Measures, Ghazab lil-Haq Intensifies

Allen 100, Pakistan Squad Overhaul & Premier League Drama

Anthropic vs Pentagon, OpenAI Steps In: What US’s AI Military Deals Mean for Your Data

Can Pakistan Survive an Oil Shock? Inflation, Remittances & Default Risk

US-Israel Iran War Enters Fifth Day as Conflict Spreads Across Region

US News Roundup: Trump meets Merz; Wall Street Update; Iran Strikes Embassy In Dubai

Trump’s flitting stance on Iran war fuels uncertainty

PAA says Pakistan’s airspace remains ‘completely available’ for civil aviation traffic

© Dawn Business