Gold is brewing a bigger explosion! Gold prices are only about $50 away from their historical highs

Spot gold (XAUUSD) prices rose 0.6% to around $3,450 an ounce in early Asian trading on Monday, about $50 below the all-time high in April.

Last weekend, Israel and Iran fired missiles and drones at each other, and hostile actions posed a threat to the region's energy infrastructure and transportation, leading to rising energy prices.

The Israeli Defense Forces announced on the afternoon of June 15 local time that Israeli warplanes launched a "violent" attack on Iran's nuclear facilities in Isfahan that day.

In a statement, an Israeli military spokesman said that Israel will continue to strike Iran's strategic capabilities, especially those related to its nuclear program.

On June 15 local time, the head of the Isfahan Municipal Government in central Iran confirmed in an interview that the Iranian Ministry of Defense's branch building in Isfahan was damaged in the Israeli airstrike that morning. According to a message released by the Iranian Ministry of Petroleum on June 15, the refinery in Isfahan has not been affected by the Israeli attack and is still operating normally.

On the night of June 15, local time, an Israeli military spokesman announced that weapons production bases across Iran had become targets after a large-scale attack on the infrastructure of the Islamic Revolutionary Guard Corps and the Iranian army in Tehran, the capital of Iran, earlier that day. He said that Israel had completed a large-scale attack on Iran's weapons production capabilities.

The Israeli government said on June 15 that Iran had launched more than 200 missiles at Israel, killing at least 13 people, including 3 minors, and injuring at least 380 people, 9 of whom were seriously injured. The Israeli government said there were 22 missile landing points in Israel.

Iranian media quoted the Iranian Ministry of Health as saying that as of noon on June 14, Israel's attacks had killed 128 Iranians and injured about 900 people.

Bloomberg pointed out that the sudden rise in geopolitical risks has added more momentum to the rise in gold prices, and this wave of gains is mainly due to the threat of US President Donald Trump's radical tariff agenda to global economic growth.

Gold prices have risen more than 30% so far in 2025, with central banks seeking to diversify their reliance on the dollar another important driver of the surge.

Gold prices surged 1.4% on Friday, after rising in the previous two days as weak U.S. inflation and weak jobs data fueled expectations that the Federal Reserve will cut interest rates later this year. Low interest rates are generally good for gold because it doesn't pay any interest.