Gold reached a fresh high of $2,402/oz on Friday 12 April (Figure 1) when geopolitical risks escalated as Israel and its allies prepared for an attack from Iran. That missile and drone attack, which arrived on Saturday 13 April did not have any fatalities and damage was minimal, marking a sign of well-executed defence. Gold prices pared back to $2,350/oz by Monday 15 April, but it is unclear what Israel’s response will be. Should Israel and Iran enter a new overt war, rather than the war through proxies that we have become accustomed to since October 2023, geopolitical risks could scale higher. Although the US and other allies are encouraging Israel to maintain restraint, it is uncertain whether they will. Also, an embarrassed Iran could strike with greater vengeance next time it attacks. Gold is likely to maintain its safe-haven bid as a result.
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Historical performance is not an indication of future results and any investments may go down in value.
