Gold Extends Gains On Heightened Geopolitical Tensions

Spot gold rose 0.6 percent to $5,008.06 an ounce after a more than 2 percent gain in the previous session. U.S. gold futures were up 0.4 percent at $5,027.56.

Risk aversion gripped financial markets following reports that American military intervention in Iran may come sooner than expected.

CBS News reported citing top national security officials that the U.S. military is ready for potential strikes on Iran as soon as Saturday, but the timeline for any action is likely to extend beyond this weekend.

Axios reported that a potential U.S. military operation against Iran would likely be a “massive, weeks-long campaign” and that Israel is pushing for a scenario targeting regime change in the Islamic Republic.

Elsewhere, Russia said it destroyed 113 Ukrainian drones overnight as U.S.-brokered Geneva talks ended without a breakthrough.

The dollar held near a two-week high after the Federal Reserve’s January meeting minutes showed officials remain divided about the outlook for interest rates, with many members cautioning that disinflation may be slow and uneven.

A slew of U.S. economic data, including reports on weekly jobless claims, the trade deficit and pending home sales will be in the spotlight later in the day ahead of Friday’s crucial inflation report.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.