Gold extends gains as Middle East war boosts safe-haven demand
A stronger greenback typically makes dollar-denominated assets such as bullion more expensive for other currency holders
Add BT as a preferred source
[BENGALURU] Gold prices rose for a fifth consecutive session on Tuesday (Mar 3), as investors sought safe havens amid an escalating US 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 per cent at US$5,377.21 per ounce, as at 9.22 am. In the previous session, bullion climbed to its highest point in more than four weeks after the US and Israel launched strikes on Iran over the weekend.
US gold futures for April delivery were up 1.5 per cent at US$5,391.90.
The US dollar hovered close to a more than five-week high reached on Monday, supported by firm demand and cautious market sentiment.
A stronger greenback typically makes dollar-denominated assets such as bullion more expensive for other currency holders. But in crisis conditions, gold trades more as a risk hedge than as a currency alternative.
Iranian media reported that a senior official from the Islamic Revolutionary Guards said on Monday that the Strait of Hormuz has been closed and warned that Iran would fire on any ship trying to pass through the strategic waterway.
This is Iran’s most explicit warning since telling ships it was closing the export route on Saturday, a move that threatens to choke a fifth of global oil flows and send crude prices sharply higher.
US President Donald Trump said that he ordered the attack on Iran to thwart what he described as imminent threats from Tehran’s nuclear and ballistic missile programmes, vowed to pursue the conflict for as long as necessary, while warned a “big wave” of further attacks was coming soon, without providing specific details.
The attack on Iran has pitched the Gulf into war, killed scores of civilians in Iran, Israel and Lebanon, thrown global air transport into chaos and shut down shipping through the Strait of Hormuz.
Spot silver rose 1.4 per cent to US$90.67 per ounce on Tuesday, after climbing to a more than four-week high in the previous session.
Spot platinum added 0.6 per cent to US$2,316.50 per ounce, while palladium gained 1.6 per cent to US$1,795.08. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Ohmyhome Ltd sells real estate business for token US$1 due to poor business and continued losses
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
Buyer for England striker Harry Kane’s former mansion must pay £3.4 million after abandoning deal
EU and Asean at 50: time for bold action
