Oil prices surged as much as 10%, while gold broke above the $3,400-per-ounce mark, trading at $3,427 at the time of writing, following Israeli military strikes targeting Iran’s nuclear facilities. These developments come amid heightened geopolitical tensions, coinciding with recent U.S. and International Atomic Energy Agency (IAEA) announcements related to Iran’s nuclear compliance.
The White House distanced itself from Israel’s actions, with Secretary of State Marco Rubio issuing a statement:
“Tonight, Israel took unilateral action against Iran. We are not involved in strikes against Iran and our top priority is protecting American forces in the region. Israel advised us that they believe this action was necessary for its self-defense. President Trump and the Administration have taken all necessary steps to protect our forces and remain in close contact with our regional partners. Let me be clear: Iran should not target U.S. interests or personnel.”
In response to the strikes, Israel declared a state of emergency, anticipating missile and drone retaliation from Tehran. Explosions were reported northeast of Tehran early Friday, according to state media Nour News.
Reports from the London Stock Exchange Group (LSEG) indicate that Israeli strikes may have killed several senior members of Iran’s general staff, including the chief of staff and top nuclear scientists, an Israeli defense official confirmed.
Market Outlook
Investors are now closely monitoring the risk of wider escalation and possible Iranian retaliation, which could sustain demand for safe-haven assets in the near term as uncertainty unfolds ahead of the weekend.
Technical Analysis
Technically, gold’s price action has suggested further upside potential following a retest of the bear flag breakout earlier this week. The precious metal is currently testing a previous swing high near $3,432 reached on May 6.
Key resistance levels to watch are $3,450 and $3,475, while support may be found at $3,400, $3,375, and potentially $3,333 in the event of a pullback.
Ultimately, gold’s trajectory will largely depend on ongoing developments between Israel and Iran over the coming days.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
