Gold Price Forecast: XAU/USD rises above $2,410 after reports of Israeli attack on Iran
■Gold price rises as risk aversion intensifies following reports of Israeli missiles striking a site in Iran.
■Iran’s Fars News Agency reported explosions at the central Isfahan airport.
■The gains in the US Dollar could limit the advance of the Gold prices.
Gold price surges to nearly $2,410 per troy ounce during the Asian session on Friday. The safe-haven yellow metal gains ground as risk aversion sweeps across the financial markets following confirmation from ABC News that Israeli missiles struck a site in Iran, exacerbating tensions in the Middle East.
According to Reuters, citing Iran’s Fars News Agency, locals reported hearing explosions at the central Isfahan airport. However, the cause of these explosions remains unknown. Investigations are ongoing to determine the exact details of the incident.
On the US Dollar's front, Federal Reserve (Fed) officials conveyed hawkish messages on Thursday, leading to a surge in US Treasury yields and the Greenback, consequently curtailing the upward momentum of non-yielding assets like Gold. The stronger USD renders bullion more expensive for holders of other currencies.
Atlanta Fed President Raphael Bostic highlighted that US inflation is excessively high and emphasized that the Fed still needs to make progress on addressing inflation. Meanwhile, New York Fed President John Williams stressed the Fed's commitment to being data-dependent and expressed that he does not currently perceive an immediate need to lower interest rates.
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