Gold prices are experiencing a significant surge, reaching a seven-week high and nearing the $3,450 mark early on Friday. This upward movement is primarily driven by the escalating conflict between Israel and Iran, which is fueling a strong flight to safety among investors.

The precious metal’s appeal as a safe haven asset has been undeniable, with gold extending its winning streak for a third consecutive day. This unabated demand is evident in Asian trading, where gold prices have already gained approximately 1.50% on Friday. The daily Relative Strength Index (RSI) is bullish, further indicating a positive outlook for gold as it maintains its upward trajectory after successfully holding above the $3,377 level.

Gold prices on MCX opened higher on Friday, tracking gains in international bullion prices as rising geopolitical conflict in the Middle East increased safe-haven bets for the yellow metal. Silver prices also extended gains. MCX gold rate opened higher by ₹1,108, or 1.12%, at ₹99,500 per 10 grams as against its previous close of ₹98,392. The price jumped to a high of ₹100,403 level. 

Safe-haven demand was further boosted by growing uncertainty over US trade policy. President Donald Trump threatened to impose unilateral tariffs to pressure trading partners, though Treasury Secretary Scott Bessent suggested the current 90-day tariff pause could be extended.

On the economic front, softer-than-expected US consumer and producer inflation data earlier this week increased expectations for additional Federal Reserve rate cuts this year, providing further support for non-yielding assets like gold.