• Gold rises over 1% after Iran launched missiles at Israel, intensifying Middle East conflict.
• Market focus shifts from strong US jobs data to geopolitical uncertainty, driving risk aversion and boosting safe-haven demand for Gold.
• A daily close below $2,665 could trigger a pullback, but ongoing tensions keep bullish momentum alive for new record highs.

Gold price rallied over 1% on Tuesday amid growing tensions in the Middle East as Israel’s attack on Hezbollah spurred Iran’s reaction, which launched nearly two hundred missiles. This sponsored a leg-up in the non-yielding metal, shrugging off overall US Dollar strength. At the time of writing, the XAU/USD trades at $2,662 after bouncing off daily lows of $2,632.

Risk aversion is the name of the game, as investors' focus shifted from better-than-expected US jobs data to stabilized business activity in the manufacturing sector, according to the Institute for Supply Management (ISM).

Newswires revealed that Iran attacked Israel. According to ABC sources, Iran will launch 240-250 missiles at Israel. In the meantime, Israel revealed that the air force will continue striking targets in Lebanon, while US National Security Adviser Sullivan said, “There will be severe consequences for this attack.”

Jim Wyckoff, Kitco Analyst, wrote, “It’s very likely gold prices will hit new record highs if Iran strikes Israel. Silver prices would also likely hit new for-the-move highs.”