Gold hits nearly two-month high as Middle East tensions spur safe-haven demand
Gold prices climbed on Friday to their highest levels in nearly two months, and were on track for a weekly gain, after Israeli military strikes on Iran drove investors toward safe-haven assets.
Spot gold was up 1.2 per cent at $3,423.30 an ounce, as of 0544 GMT, after hitting its highest since April 22 earlier in the session. Bullion has gained more than 3.4 per cent so far this week.
U.S. gold futures gained 1.2 per cent to $3,444.50.
Geopolitical tensions escalated after Israel targeted Iran's nuclear facilities, as tensions mounted over U.S. efforts to halt Iran's production of atomic bomb materials.
'This latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now, with investors making a play towards safe-haven assets in response,' said Tim Waterer, chief market analyst at KCM Trade.
Israel declared a state of emergency, citing expected missile and drone strikes from Tehran, and the U.S. military is preparing for various contingencies in the Middle East, including potential assistance with evacuating American civilians, a U.S. official told Reuters on condition of anonymity.
The new gold rush: Investors snap up bars and coins amid stock and bond market turmoil
'Gold surged past resistance around $3,400 on news of the airstrikes, and further upside could be in-store should the escalation continue,' Waterer said.
Signaling a cooling U.S. labor market and subdued inflation pressures, new applications for unemployment benefits held at an eight-month high last week, while slowing domestic demand helped restrain producer prices in May.
The data, released a day after the Labor Department reported a moderate rise in consumer prices in May, bolstered expectations of an earlier rate cut.
Traders are now expecting a Federal Reserve interest rate cut of 55 basis points by the year-end, starting in September rather than October as previously anticipated.
Elsewhere, spot silver fell 0.3 per cent at $36.25 per ounce, platinum lost 1 per cent at $1,282.55 and palladium shed 0.5 per cent to $1,050.61. All three metals were set for weekly gains.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
4 hours ago
- Globe and Mail
Shares of meatpacking giant JBS fall in debut on the NYSE
Shares of Brazilian meat giant JBS fell 3.9% in as they made their debut Friday on the New York Stock Exchange. Trading in New York has been a long-held goal for JBS, which was founded 72 years ago and is now one of the world's largest meat companies. Half of its annual revenue comes from the U.S., where it has more than 72,000 employees. JBS is America's top beef producer and its second-largest producer of poultry and pork. JBS's minority shareholders voted last month to approve the company's plan to list its shares both in Sao Paulo and New York, casting aside opposition from environmental groups, U.S. lawmakers and others who noted JBS' record of corruption, monopolistic behavior and environmental destruction. JBS said a dual listing would give it broader access to investors and more competitive interest rates, which would help it finance its growth. It has also said a U.S. listing would subject it to more oversight from regulators. The U.S. Securities and Exchange Commission approved JBS's planned listing last month. Still, the proposed listing has received significant pushback. Earlier this week, Mighty Earth, an environmental group, said it sent a letter to the NYSE board urging it to decline the listing. Mighty Earth contends that JBS is illegally profiting from deforested land in Brazil. Glass Lewis, an influential independent investor advisory firm, was also among those recommending that JBS's shareholders reject the planned listing. In its report, Glass Lewis said the recent return of brothers Joesley and Wesley Batista to the JBS board should concern investors. The brothers, who are the sons of JBS' founder, were briefly jailed in Brazil in 2017 on bribery and corruption charges. Glass Lewis also objected to the company's plan for dual share classes, which give the Batistas and other controlling shareholders more voting power. JBS said the outcome showed shareholders were confident in the benefits a dual listing would bring. __
CTV News
5 hours ago
- CTV News
Search for gold to offset cost of disaster at Yukon mine, government says
Victoria Gold's Eagle gold mine site north of Mayo, Y.T., is shown in this handout aerial photo taken Wednesday, July 3, 2024. THE CANADIAN PRESS/HO — Yukon Government WHITEHORSE — A court-appointed receiver plans to start sifting for gold in cyanide-laced water stored at the Eagle Gold Mine in Yukon. The Yukon government says proceeds will be used to help pay for some of the cleanup after a disaster at the mine a year ago. The failure of the mine's heap-leach facility, which contained millions of tonnes of cyanide-laced ore and water, set off the disaster and subsequent takeover by the receiver. A statement from the territory says the gold being recovered is found within cyanide water stored in ponds at the mine site and the process will also destroy some cyanide, helping treat the contaminated water. It says work continues at the gold mine to manage a large amount of additional water from the spring snowmelt, and contaminated water is being treated and discharged. The government says it's too early to say what the value of the gold being recovered might be but the receiver will report those results in further reports to the court. This report by The Canadian Press was first published June 13, 2025.
Globe and Mail
6 hours ago
- Globe and Mail
GameStop Stock Selloff Explained - Buy Chance or Value Trap?
Video game retailer GameStop Corp. GME shares had unpredictable price swings in 2021 due to a short squeeze, followed by a steady decline. GameStop's shares recently plunged due to lower quarterly revenues and investor dissatisfaction with the company's new capital raise policy. Despite this, the company cut costs and improved profitability. Does GME stock present a good buying opportunity or is it a value trap? Why GameStop Shares Are Falling? GameStop's latest fundraising initiative led to a drop of over 20% in its share price on Thursday. The video game retailer was planning to raise $1.75 billion in debt financing from investors, its second such move in recent times. GameStop raised funds for general corporate needs, with investments linked to their Investment Policy. The funds were likely used to buy Bitcoins (BTC), which is consistent with GameStop's policy update in March. GameStop recently raised funds to purchase 4,710 Bitcoin, valued at more than $500 million. This shift from selling video games to investing in Bitcoin was aimed at enhancing the company's value and increasing liquidity to meet financial needs. However, GameStop's recent decision to acquire more Bitcoin was not well-received by investors. This is because Bitcoin is a volatile asset; it performs exceptionally well when it continues to rise, but when it drops, it can pose significant risks. Is the Decline in GameStop Shares a Buy Opportunity? GameStop is emulating Strategy Incorporated MSTR, previously known as MicroStrategy, which has acquired nearly 530,000 Bitcoins worth more than $45 billion since 2020. Strategy's shares surged over 2,500% in the last five years, benefiting from Bitcoin's bullish trend, particularly post the November Presidential election. GameStop's investment in Bitcoin could be beneficial, but its impact on revenue growth remains uncertain. In the first quarter of 2025, GameStop's revenues decreased by 17% compared to the previous year. According to the latest SEC filing, GameStop's sales fell by 28% to $3.8 billion in 2024 from $5.3 billion in 2023. The company's revenues decreased due to shifting customer interest from physical to digital video games. GameStop, though once a meme stock craze of the early 2020s, now lacks revenue growth while facing business challenges. Without new revenue-boosting strategies in place, it's sensible to avoid high-risk investments in GameStop, even though shares are trading at a discount. Is GameStop a Value Trap Right Now? Generally, a value trap occurs when a cheaply priced stock has problems like falling earnings and weak management, but this doesn't apply to GameStop. GameStop faced more troubles during the pandemic as people stayed at home and avoided stores. However, GameStop's management made strategic moves to cut costs and increase profitability by closing stores in various countries like Switzerland, Austria, Ireland, Italy, and the United States. They are now planning to do the same in Canada and France this year. GameStop posted almost $45 million in profits in the first quarter of 2025, a substantial year-over-year improvement, and has a 29.7% debt-to-equity ratio, lower than the Gaming industry's average of 186.4%, indicating financial stability. This reliance on shareholders' equity over borrowed capital could keep stakeholders interested for potential gains. Image Source: Zacks Investment Research For now, GameStop has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GameStop Corp. (GME): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report This article originally published on Zacks Investment Research (
