Gold prices were on pace to close at a new all-time high after Israel’s attack on Iran ratcheted up fears about war in the Middle East.
The metal traded for $3,456 Thursday morning, ready to mark a new high at the close. The last record level was of $3,425.30, which it hit in April. This price refers to the most-actively traded gold futures contract, which is where the most institutional and retail money flows.
The gains are exactly what you would expect. When there’s high amounts of uncertainty, investors want to put their money into safe assets, like gold. Inflation is another factor working for gold. Higher oil prices on the back of Israel’s strike raise the potential for higher inflation ahead. Gold is the world’s most popular protection against inflation.