Oil prices up, gold down, as Iran suddenly strikes Israel

Gold prices rose while Asian stocks mostly fell on Monday, as rising geopolitical tensions in the Middle East spurred demand for safe haven investments after Iran launched an surprize attack against Israel.

Hong Kong’s Hang Seng Index dropped 0.8% in mid-afternoon trade. Japan’s Nikkei 225 closed 0.7% lower, while South Korea’s Kospi ended down 0.4%. But China’s Shanghai Composite Index finished 1.2% higher.

Spot gold was up 0.5% at $2,355 per ounce on Monday. It had hit an all-time high of $2,431 per ounce on Friday because of fears of a potential attack by Iran on Israel. So far this year, bullion has surged 18%.

“Heightened tensions in the Middle East amid a worsening geopolitical backdrop kept commodity markets on edge,” pointed out ANZ in a research report.