Gold prices surged above $3,420 on Friday, marking the highest level in over a month, as escalating geopolitical tensions in the Middle East and global economic uncertainty drove investors toward safe-haven assets.
Various global news agency reports said the rally followed Israel’s preemptive strike on Iran, which Prime Minister Benjamin Netanyahu said targeted Tehran’s nuclear facilities. The move sparked fears of a wider regional conflict, prompting global market volatility and flight to safety.
The surge in gold, reports said, was compounded by concerns over shifting U.S. trade policy. President Donald Trump’s threats of new unilateral tariffs unsettled markets, though Treasury Secretary Scott Bessent hinted at a possible extension of the current 90-day pause.
Adding to the uncertainty, recent U.S. inflation data came in weaker than expected, increasing speculation that the Federal Reserve may cut interest rates further this year—boosting demand for non-yielding assets like gold.
Oil prices also spiked amid fears of supply disruptions in the Middle East, putting pressure on import-reliant nations like the Philippines. With both gold and crude surging, economists warn of inflationary risks for the Philippine economy, where rising fuel costs could drive up transportation and food prices, widening the current account deficit and dampening consumer spending.
Analysts say continued instability could weigh heavily on emerging markets, which are already grappling with slower global growth and volatile capital flows.
