Investors fled to safe-haven assets Friday after a series of Israeli airstrikes on Iran marked a major escalation of conflict in the region.
The scale of the attack, which Israel said was targeting Iran’s nuclear program, took markets by surprise, pushing up prices of assets thought to offer protection in times of heightened volatility.
“The news has led to significant fears about an escalation and a wider regional conflict,” Deutsche Bank strategists said in a note early Friday. “The effects of the attack have cascaded across global markets, with a strong risk-off move for several asset classes.”
Gold hit an almost two-month high on the news, although pared some gains as the morning progressed. Spot prices of the metal were up 1.1% at $3,420.24 at 7:42 a.m. London time. Gold futures
for August delivery were 1.3% higher at $3.446.
