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Trump tells Iran to make deal after Israel blasts
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Spot gold up over 4% so far for the week
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Platinum heads for weekly gain
(Rewrites for U.S. morning trading)
By Ashitha Shivaprasad and Sarah Qureshi
June 13 (Reuters) - Gold prices soared on Friday as
investors flocked to safe-haven assets following Israeli
airstrikes on Iran, re-igniting fears of a broader conflict in
the Middle East.
Spot gold rose 1.7% at $3,439.79 an ounce as of 0923
EDT (1323 GMT), coming within striking distance of its record
high of $3,500.05 set in April. Prices gained more than 4% so
far this week.
U.S. gold futures added 1.7% to $3,461.
"Israel knocking out Iranian targets is causing a little bit
of geopolitical scare in the market. Prices will stay elevated
in the anticipation of what is to come, the retaliation by
Iran," said Daniel Pavilonis, senior market strategist at RJO
Futures.
Israel launched a barrage of strikes across Iran on Friday,
saying it had attacked nuclear facilities and missile factories
and killed a swathe of military commanders in what could be a
prolonged operation to prevent Tehran building an atomic weapon.
U.S. President Donald Trump suggested that Iran had brought
the attack on itself by resisting a U.S. ultimatum in talks to
restrict its nuclear program.
Softer U.S. inflation prints earlier this week added extra
shine to gold, bolstering expectations of interest rate cuts by
the Federal Reserve.
Bullion is widely regarded as a safe asset, especially
during times of economic turmoil and geopolitical unrest. It
also tends to thrive in a low interest rate environment.
Goldman Sachs reiterated its forecast that structurally
strong central bank buying will raise the gold price to
$3,700/toz by end-2025 and $4,000 by mid-2026. BofA sees a path
for gold to rally to $4,000/oz over the next 12 months.
On the physical front, demand in major Asian hubs weakened
this week as rates soared, with prices in India zooming past the
psychologically important 100,000-rupee mark.
Spot silver eased 0.3% at $36.24 per ounce, gaining
nearly 1% for the week.
Platinum fell 3.9% to $1,244.91 and was up 6.3% for
the week. Palladium fell 0.3% to $1,052.28 but added 0.7%
so far this week.