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Israel’s Strike on Iran Sends Gold Higher—More to Come, Says Trump
Economic
Summary:
Gold (XAU/USD) is extending gains above $3,430 amid intensifying Israel-Iran conflict and rising geopolitical risks, while investors eye key US consumer sentiment and inflation expectations data.
Buy
TradingXAUUSD
EXP
3420.00
Entry Price
3500.00
TP
3380.00
SL
3443.90 +11.04 +0.32%
0
Point
Flat
3380.00
SL
CLOSING
3420.00
Entry Price
3500.00
TP
Gold prices have continued their steep climb into Friday’s session, buoyed by an escalating geopolitical crisis in the Middle East as Israel ramps up military strikes on Iran. The ongoing conflict has stirred broad-based risk aversion, sending investors flocking to traditional safe havens such as gold, which now trades above $3,430 per ounce—a fresh multi-month high.
The precious metal’s latest rally is underscored by mounting global anxiety after Israel launched what it described as a “coordinated and targeted” series of airstrikes deep into Iranian territory. According to reports from Bloomberg and Reuters, Israeli forces targeted over 100 strategic locations using roughly 200 air force planes. Among the casualties are senior Iranian military figures, including Hossein Salami, head of the Islamic Revolutionary Guard Corps, and Mohammad Bagheri, Iran’s military chief of staff.
Israeli Prime Minister Benjamin Netanyahu confirmed the strikes, stating that they were aimed at crippling the heart of Iran’s nuclear enrichment program. The military offensive followed a damning resolution by the UN nuclear watchdog, accusing Tehran of breaching the Nuclear Non-Proliferation Treaty. In defiance, Iran declared its intention to accelerate its nuclear activities, claiming the action was in response to a “flagrant violation” of its sovereignty.
The United States has expressed support for Israel’s military campaign, further compounding the geopolitical risks. In a striking interview with ABC News, former US President Donald Trump remarked, “They got hit hard. Very hard. And there’s more to come. A lot more.” On social media, Trump doubled down, saying he had given Iran multiple chances to negotiate but that “they just couldn’t get it done.”
As fears of a broader regional conflict mount, risk-off sentiment is dominating financial markets, propelling gold higher. The exodus to safety is also being fueled by concerns that the US may be drawn deeper into the conflict, following reports that American personnel are being repositioned across the Middle East. Plans for a sixth round of US-Iran nuclear talks, originally scheduled for this weekend, have been scrapped amid the chaos.
The geopolitical landscape is further complicated by international condemnation of the attacks. Chinese foreign ministry spokesperson Lin Jian urged all parties to “avoid further escalation” and reiterated Beijing’s willingness to mediate in the interest of regional peace. Saudi Arabia also denounced the strikes, calling for restraint and dialogue.
Against this tense backdrop, markets are preparing for key US economic data that could shape near-term monetary policy expectations. Of particular importance is the University of Michigan Consumer Sentiment Index, due for release later today. The report, which includes both headline sentiment and closely watched inflation expectations, is regarded as a leading barometer of consumer confidence and price outlook.
The Federal Reserve will be paying especially close attention to the one-year and five-year inflation expectations components, as policymakers weigh their next moves. The sentiment data comes on the heels of this week’s inflation prints, which have offered mixed signals about the pace of price pressures.
On Thursday, the US Producer Price Index (PPI) showed a modest cooling in wholesale inflation. Headline PPI rose 2.6% year-on-year in May, matching analyst expectations and slightly up from April’s 2.5%. Core PPI, which strips out volatile food and energy components, eased to 3.0% from 3.2%. These figures followed Wednesday’s Consumer Price Index (CPI) release, which also signaled a softening of inflationary pressures at the consumer level.
Still, with Middle East tensions threatening to disrupt oil flows and global supply chains, there’s a renewed risk that geopolitical instability could reverse recent disinflationary trends and reignite cost pressures.
Technical Analysis 
From a technical standpoint, gold remains in a robust short-term uptrend. The metal’s price action is currently testing resistance near $3,435, with attempts to consolidate above this level suggesting ongoing bullish momentum. While overbought conditions on the Relative Strength Index (RSI) are emerging, price action remains underpinned by a bullish corrective trend on the four-hour chart.
Intraday analysis reveals that gold continues to trade above the $3,400 threshold, with immediate support located in the $3,400–$3,410 range. Deeper support sits around $3,375–$3,385, coinciding with a former top/bottom flip zone. A break below this region may prompt a short-term pullback, though the broader bias remains bullish.
The key psychological level to watch is $3,500, which serves as the next upside target should momentum continue. A daily close above this resistance would reinforce the bullish case and open the door for further gains. Traders are advised to exercise caution with short positions, given the strength of the upward trend and persistent geopolitical tailwinds.
TRADE RECOMMENDATION
BUY GOLD
ENTRY PRICE: 3420
STOP LOSS: 3380
TAKE PROFIT: 3500
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