XAU/USD: Gold Climbs Near All-Time High as Israel Braces for Possible Hezbollah Attack

Precious metal was just $5 shy of its record hit July 17 as geopolitical tensions ramped up demand for safe-haven assets.

• Gold XAUUSD jumped aggressively to start off weekly trading with prices nearly breaking out to a fresh all-time record. The yellow metal logged the third consecutive day of gains on Monday, up 3.8% for the time span. Early Tuesday morning gold refused to take a breather and pumped another 0.5% to hit just under $2,480 per ounce — mere $5 shy of its record high of $2,485 per ounce set on July 17.
• Geopolitical tremors were supporting the upside narrative for gold prices. The White House alarmed on Monday that Iran and Hezbollah may respond in retaliation to the killing of militant leaders. Israel put its military on high alert and the Pentagon sent a guided-missile submarine to the region, among other defensive measures. "We have to be prepared for what could be a significant set of attacks," White House national security spokesperson John Kirby told reporters.
• Investors’ first reaction was to load up on safe-haven assets, where gold truly shines. The bullion has long been considered a safe space in jittery markets. Since the Israel-Hamas conflict erupted on October 7, gold prices have rallied more than 36% to their record high. With the ongoing uncertainty, traders should expect the volatility of gold to continue drawing attention.