Gold Rallies on Iran-Israel Escalation as Investors Seek Safety

Gold prices increased on Tuesday as tensions between Israel and Iran drove investors toward safe-haven assets. Spot gold rose 0.1% to $3,386.29 per ounce.

The conflict has escalated to concerning levels, with Jordan’s King Abdullah warning of global threats.

Meanwhile, investors are watching the Federal Reserve’s upcoming policy meeting on Wednesday, with expectations of potential rate cuts later this year.

Despite the current gains, Citi has lowered its gold price forecasts, predicting prices could fall below $3,000 by late 2025.