Gold prices rallied sharply in early Friday trading in Asia, as escalating tensions in the Middle East triggered a wave of safe-haven buying. The surge followed a large-scale Israeli airstrike on Iranian military and nuclear targets, sparking fears of broader regional conflict.

As of 10:50 p.m. ET, spot gold was up 1.5%, reaching $3,436.97 per ounce, while futures for August delivery rose 1.6% to $3,459.60.

Middle East Tensions Drive Demand for Gold

The latest rally was ignited by news that Israel had launched a major preemptive military operation against Iran early Friday, striking several installations in and around Tehran. In response, Iran activated its national air defense systems and air raid sirens blared across Israeli cities, which had entered a state of emergency.

U.S. officials confirmed that Washington played no part in the operation. Secretary of State Marco Rubio underscored that Israel acted unilaterally and in what it described as self-defense.

Economic Signals Add to Bullish Momentum

Gold had already been trending upward earlier in the week amid lingering uncertainty over U.S.-China trade relations. While negotiations appeared to make some headway, a lack of firm commitments left markets unsettled.

Additional support for gold came from weaker-than-expected U.S. economic data. A rise in unemployment claims and muted producer price growth have led traders to anticipate that the Federal Reserve may move to lower interest rates sooner, making non-yielding assets like gold more attractive.

Precious Metals Mixed Amid Volatility

While gold led the rally in safe-haven assets, other precious and industrial metals posted varied performances. Platinum futures slipped 0.8% but remained close to a four-year high. Silver gained 1%, trading at $36.625 per ounce—just shy of a 13-year high.

In the industrial metals segment, London copper futures inched down 0.3% to $9,678.70 per metric ton. In the U.S., copper contracts dipped 0.5% to $4.8195 per pound.

As geopolitical instability mounts, analysts warn that further escalations could sustain or even amplify demand for safe-haven assets like gold in the days ahead.