Gold and Oil Surge Amid Geopolitical Tensions and Renewed Nuclear Fears

Gold and oil prices surged again as geopolitical tensions escalated and nuclear fears resurfaced,
prompting investors to flock to safe-haven assets and reshuffling the dynamics of global energy markets.

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Metals

Energy

Metals

Gold and oil prices recorded significant gains in Monday morning trading, driven by intensifying geopolitical tensions between Russia and Ukraine, along with worrying developments in Iran’s nuclear file.

August gold futures — the most actively traded contract — rose by 0.75% to $3,340.70 per ounce,
while spot prices for the precious metal climbed 0.85% to $3,317.16 per ounce.
This came amid a 0.15% decline in the U.S. dollar index to 99.20 points, which bolstered gold’s appeal to investors.

The surge followed reports indicating that Ukrainian intelligence had launched a complex aerial operation involving 117 drones targeting Russian bases, reportedly destroying around 40 military aircraft, according to Axios.

Silver also posted gains, with futures up by 0.6% to $33.23. In contrast, palladium and platinum prices saw slight declines of 0.2% and 0.35%, respectively.

Energy

Oil prices saw notable increases as well. Brent crude rose by 2.35% to $64.27 per barrel,
while U.S. West Texas Intermediate (WTI) crude jumped by 2.8% to $62.50 per barrel.

The rise came amid market concern over a confidential report by the International Atomic Energy Agency (IAEA), which revealed that Iran’s enriched uranium stockpile is nearing the threshold required for producing nuclear weapons — raising fears of escalating tensions in the Middle East.

Additionally, aerial sabotage operations in Russia — believed to have caused losses of up to $2 billion to the Russian air force — fueled investor anxiety over the deepening conflict. This drove demand for safe-haven assets like gold and repriced supply risk in the oil market.

It is worth noting that the OPEC+ alliance decided in its latest meeting to increase output by 411,000 barrels per day in July — the third consecutive monthly hike — in an effort to maintain market balance amid volatile global conditions.

Gold and Oil Surge Amid Geopolitical Tensions and Renewed Nuclear Fears

Gold and Oil Surge Amid Geopolitical Tensions

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