MELBOURNE – Gold jumped when trading opened on April 15 after Iran’s unprecedented attack on Israel over the weekend drove demand for safe haven assets.

Spot gold rose 0.4 per cent to US$2,354.62 an ounce as of 8.51am on April 15 in Singapore, after rising by 0.6 per cent last week, as the conflict in the Middle East entered a dangerous new phase.

Iran fired more than 300 drones and missiles against Israel, though most were intercepted and there were no fatalities reported.

The precious metal broke through US$2,400 an ounce on April 12 to hit a record US$2,431.29, but closed the session lower as technical indicators indicated its rally had run too hot and investors liquidated positions.

The latest developments in the Middle East rekindled the flight to safety, with fears over a potential retaliation by Israel likely to support gold in the near term.

The escalating tensions in the Middle East are “a reason in itself to buy gold”, said head of research at Pepperstone Group Chris Weston.

“There’s a sizeable geopolitical premium being priced into moves,” he said, adding that the medium-term path will likely be higher.

Gold has surged by almost 20 per cent since mid-February in a rally that’s taken many investors by surprise.

The US Federal Reserve is moving closer to its much-anticipated pivot. Robust buying by central banks and increased demand from Chinese consumers have been the main drivers, along with rising geopolitical risk in the Middle East and Ukraine. BLOOMBERG