Gold Prices Surge Amid Escalating US-Israel Airstrikes on Iran

Gold prices continued their upward trajectory for a fifth consecutive session on Tuesday, as heightened tensions in the Middle East drove investors towards safe-haven assets. Spot gold increased by 0.7 percent to $5,362.90 per ounce as of 04:52 GMT.

The rally in bullion follows a surge to its highest level in more than four weeks during the previous session, after the United States and Israel launched airstrikes on Iran over the weekend. Reports indicate that US gold futures for April delivery also rose by 1.2 percent, reaching $5,376.50.

Market analysts attribute the rise in gold prices to growing uncertainty surrounding the ongoing conflict. Tim Waterer, chief market analyst at KCM Trade, stated that the "scope and duration of the conflict remain very much open-ended," and that these uncertainties are fueling increased demand for gold as a safe-haven asset.

Further escalating concerns, Iranian media reported on Monday that a senior official from the Islamic Revolutionary Guard Corps (IRGC) announced the closure of the Strait of Hormuz. The official reportedly warned that Iran would fire on any ship attempting to pass through the strategic waterway.

Analysts and sources suggest that the potential for the conflict to expand into a prolonged regional war is deepening market uncertainty, prompting further movement into gold and other traditionally secure assets.

The situation remains fluid, with both the duration and potential consequences of the conflict unclear. Investors are closely monitoring developments in the region, as any escalation could have significant implications for global markets.