The U.S. and Israel are reportedly preparing a military operation against Iranian energy infrastructure as early as this weekend. This development follows July 31 reports of Iranian attacks on tankers in the Strait of Hormuz.
Analysts expect gold futures (GC=F) to open with high volatility on Sunday evening. The potential for a wider regional conflict is driving a significant flight-to-safety trade among investors.
Escalating tensions may overshadow the Federal Reserve’s recent hawkish policy stance. Rising oil prices and inflation risks are further boosting gold's appeal as a hedge against geopolitical shocks.
As of August 1, the situation remains tense without official confirmation of military action. Investors are monitoring the Middle East for developments that could trigger a sharp rally in gold prices.