Global gold prices surged sharply following an airstrike launched by Israel targeting Iran. The attack sparked fears of escalating conflict, prompting investors to rush toward safe-haven assets on Friday (June 13).

According to a report from Reuters on Monday (June 16), here’s a breakdown of how key precious metal commodities performed:

• Spot gold climbed by 1.3% to reach US$3,428.10 per ounce.

• Gold futures closed 1.5% higher at US$3,452.80 per ounce.

• Spot silver slipped slightly by 0.3%, settling at US$36.27 per ounce.

• Platinum dropped significantly by 5.9%, falling to US$1,219.03 per ounce.

• Palladium weakened by 1.3%, ending at US$1,041.51 per ounce.

Daniel Pavilonis, a Senior Analyst at RJO Futures, stated that Israel's military assault on Iranian targets has caused heightened geopolitical anxiety in the markets. “Gold prices are expected to remain elevated as investors await potential retaliation from Iran,” he said.

Israel’s strike reportedly targeted several strategic facilities in Iran, including nuclear sites and missile factories, and also resulted in the deaths of several high-ranking military commanders. The attack is believed to be part of a long-term campaign to thwart Iran’s potential nuclear weapons development in Tehran.

Meanwhile, attention also shifted to the United States after early-week inflation data came in below expectations, reinforcing speculation that the Federal Reserve may soon cut interest rates.

A low interest rate environment generally supports gold prices, as it reduces the opportunity cost of holding non-yielding assets like gold.

Gold is also widely recognized as a safe-haven investment, especially sought after during periods of economic uncertainty or rising geopolitical tensions.