Bloomberg News: The cross-border conflict escalated again last weekend, with the two countries attacking each other with missiles and drones, threatening the security of energy infrastructure and transportation in the Middle East, pushing up energy prices, and also causing funds to flow into safe-haven assets such as gold.
In addition to geopolitical tensions, the impact of US President Trump's tough trade policy on the global economy is another major driving force for the rise in gold prices this year. Since 2025, the cumulative increase in gold prices has exceeded 30%. Central banks of some countries are also continuing to reduce their holdings of US dollar assets and increase their gold reserves.
As the conflict between Israel and Iran intensified and global risk aversion increased, gold prices rose again in Asia on Monday (June 16), once rising 0.6%, close to US$3,450 per ounce (about S$4,426), only lower than the all-time high set in April this year.
As of 9:14 am Singapore time, spot gold prices rose 0.3% to US$3441.35 per ounce. During the same period, the Bloomberg dollar spot index rose slightly by 0.1%. Silver fell slightly, while platinum and palladium rose.
Analysts at Guardian Gold, an Australian gold brokerage firm, said any further conflict could drive prices to continue to rise in the current geopolitical situation. Recently, gold has performed well as a safe-haven asset, and many investors are shifting their funds from US Treasury bonds to gold.
Last Friday, gold prices rose 1.4% in view of the possibility of interest rate cuts this year.