WASHINGTON (dpa-AFX) - Gold prices rose over 1 percent to hover near a two-month high on Friday as heightened geopolitical tensions and trade uncertainties helped spur safe-haven demand for the precious metal.
Spot gold climbed 1.1 percent to $3,423.28 per ounce in European trade and was up more than 3 percent for the week. U.S. gold futures were up 1.2 percent at $3,444.50 per ounce.
Heightened tensions in the Middle East boosted bullion's appeal as a safe-haven asset following Israeli airstrikes on Iran.
Israel launched strikes against Iran early Friday morning, targeting nuclear facilities and ballistic missile factories as part of efforts 'to damage Iran's nuclear infrastructure, its ballistic missile factories and military capabilities.'
Iran retaliated by launching more than 100 drones toward Israeli territory. Iran's state-affiliated Tasnim news agency reported that six nuclear scientists were killed in the strikes, which also targeted key personnel linked to Iran's missile development programs.
The Iranian Atomic Energy Organization confirmed that the Natanz facility, a central part of the country's nuclear infrastructure, sustained damage but there was no indication of a radioactive leak.
The International Atomic Energy Agency (IAEA), which monitors Iran's nuclear activities, said it had not detected any rise in radiation levels at the site.
Markets also remain cautious on the U.S.-China trade deal. The specifics of the latest U.S-China framework agreement and details on how it will be implemented remain unclear.
It appears that there may still be significant disagreements and some details are yet to be worked out.
The International Monetary Fund (IMF) has issued a cautionary note, signaling that the brief rebound in global trade-fueled by firms rushing to beat U.S. tariffs-is now losing steam and the global economic outlook remains clouded by uncertainty.
In economic news, trading later in the day may be impacted by the release of preliminary readings on U.S. consumer sentiment and inflation expectations.
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