Gold prices rose for a fifth consecutive session

Gold prices rose for a fifth consecutive session on Tuesday as investors sought safe-haven assets amid an escalating US and Israeli air war against ‌Iran, raising fears the conflict could spiral into a protracted regional war and deepen uncertainty.

Spot gold ​was up 0.7% at $5,362.90 per ounce, as of 0452 GMT. In the previous session, ‌bullion climbed to its highest point ‌in more than four weeks after the US and Israel launched strikes on Iran over the weekend.

US gold futures for April delivery were up 1.2% at $5,376.50.

“The scope and duration of ‌the conflict remain very much open-ended, and with those uncertainties in play, gold is capturing the lion’s share of safe-haven demand,” KCM Trade chief market analyst Tim Waterer said.

Iranian media reported that a senior official from the Islamic Revolutionary Guard Corps (IRGC) said on Monday the Strait of Hormuz has been closed and warned that Iran would fire on any ship trying to pass through the strategic waterway.

This is Iran’s most explicit warning since telling ships it was closing ​the export route on Saturday, a move that threatens to choke a fifth of ‌global oil flows and send crude prices sharply higher.

The dollar hovered close to a more than five-week high reached on Monday, supported by firm demand and cautious market sentiment.

While a firmer greenback typically makes dollar-denominated assets such as bullion more expensive for holders of other currencies, that inverse relationship is not absolute.

Reuters