Gold Swings as Traders Track Conflict Between Israel and Iran

Gold fluctuated as investors tracked hostilities between Israel and Iran, following a report that Israel may have set back Tehran’s nuclear program, Bloomberg reported.

Bullion traded near $3,380 an ounce, erasing gains. CNN reported that US intelligence estimates Israel’s strikes against Iran may have delayed the Islamic Republic’s nuclear program by months. US President Donald Trump’s comments playing down a ceasefire had boosted demand for havens earlier.

The precious metal advanced by almost 4% last week as Israel opened its military campaign against Iran’s nuclear program, sparking fears of a region-wide conflict and adding fresh impetus to a rally driven by the threat to global economic growth from Trump’s aggressive tariff agenda.

Price gains have been muted since then, even as Israel and Iran continue to strike at each other.

“At first sight, gold’s reaction may be surprising, considering the potential consequences of the conflict and also the typical skittishness of the more short-term-oriented traders in the market,” said Carsten Menke, head of next generation research at Julius Baer Group Ltd. “But a closer look suggests that it is in line with the historical pattern of such geopolitical shocks not lastingly lifting gold prices.”

Prices — currently about $120 short of a record hit in April — are on pace for a sixth monthly gain, which would be the best such run in more than two decades.

Spot gold edged 0.2% lower to $3,379.74 an ounce as of 9:56 a.m. in London. The Bloomberg Dollar Spot Index was also flat. Silver and platinum gained, while palladium slipped.