Gold prices rose for a fifth consecutive session on Tuesday, as investors sought safe-haven assets amid an escalating U.S. and Israeli air war against Iran, raising fears the conflict could spiral into a protracted regional war and deepen uncertainty.
Spot gold was up 1% at $5,377.21 per ounce, as of 0122 GMT. In the previous session, bullion climbed to its highest point in more than four weeks after the U.S. and Israel launched strikes on Iran over the weekend.
U.S. gold futures for April delivery were up 1.5% at $5,391.90.
While a firmer greenback typically makes dollar-denominated assets such as bullion more expensive for holders of other currencies, that inverse relationship is not absolute. In times of heightened uncertainty, such as escalating conflict or broader market volatility, investors often buy both the dollar and gold as safe-haven assets.
"Gold would arguably be trading higher than current levels were it not for dollar appreciation since the conflict intensified. Inflation worries are front and centre for traders right now, given the direction of oil prices and reduced shipping volumes through the Strait of Hormuz," Waterer added.
Spot silver rose 1.4% to $90.67 per ounce on Tuesday, after climbing to a more than four-week high in the previous session.
Spot platinum added 0.6% to $2,316.50 per ounce, while palladium gained 1.6% to $1,795.08.
Oman Observer is now on the WhatsApp channel. Click here
