Gold prices surged sharply on Friday, reaching their highest level in nearly two months, as geopolitical tensions in the Middle East intensified. The rally was triggered by an Israeli strike on Iran’s nuclear facility, sparking global concerns over the potential for further conflict escalation.
In the latest trading session, spot gold jumped 1.3% to $3,427.36 per ounce, while US gold futures rose 1.4% to $3,448.70. Over the past week, gold has gained more than 3.5%, reflecting a surge in demand for safe-haven assets.
The situation escalated further after Israel declared a state of national emergency, following threats of retaliatory missile and drone strikes from Tehran. At the same time, the US military was reportedly preparing several emergency scenarios, including the evacuation of American civilians from the region.
According to Tim Waterer, Chief Market Analyst at KCM Trade, the latest geopolitical flare-up has shifted market focus away from global trade issues toward capital preservation, prompting large inflows into traditional safe-haven instruments such as gold.
Overall, this event highlights gold’s role as a store of value during periods of geopolitical instability and demonstrates how global uncertainty is quickly reflected in financial markets.
Market Recap
Gold
- Safe-haven driven rally
Following Israel’s strike on Iran’s nuclear site (June 13, 2025), gold prices rose between 1–1.6% in a single day, nearing $3,427–$3,450 per ounce—its highest level in weeks.
Some analysts see potential for gold to climb toward $3,500 if tensions continue to escalate.
Equities
- US futures and Asian stocks drop sharply
- S&P E-mini declined about 1–1.5%, Nasdaq fell around 1.7%, while Japan’s Nikkei and South Korea’s KOSPI each slid between 1–1.4%.
- Australia’s ASX 200 dropped 0.3%, weighed down by bank stocks despite relative strength in energy and defense sectors.
- Shift to defensive sectors
Investors rotated into utilities, energy, and defense stocks, while banking and materials sectors saw notable declines amid conflict concerns.
Forex & Bonds
- Safe-haven currencies gain
- The Japanese yen and Swiss franc appreciated by 0.3–0.5% against the US dollar.
- The US dollar, as a global safe-haven, also strengthened. Risk-sensitive currencies like the AUD weakened, with AUD/USD down over 1%.
- Treasury demand rises, yields drop
- Safe-haven demand boosted US Treasury buying, driving yields lower and adding momentum to both the dollar and yen.
Oil
- Crude prices surge
Brent and WTI crude jumped between 6–10% in just a few days, reaching the $70–$73 per barrel range, driven by fears of supply disruption—particularly through key routes such as the Strait of Hormuz.
Impact & Outlook
- Market sentiment has shifted to risk-off mode, with investors flocking to safe-haven assets including gold, US Treasuries, Swiss franc, and yen.
- Volatility remains high, as traders brace for potential Iranian retaliation; many are anticipating price gaps when markets open Monday.
- If tensions ease quickly, equity and oil markets could rebound. However, if escalation continues, financial and commodity markets are likely to face sustained pressure.
In summary:
- Gold surged 1–1.6%+ as a safe-haven asset.
- Global equities fell 1–2%.
- Yen and Swiss franc gained; AUD weakened against USD.
- Oil prices jumped 6–10% due to supply concerns.
