Gold Rises for Fifth Straight Day as Investors Move to Risk-off Assets

Gold rose for a fifth day as the escalating war in the Middle East upended global energy markets and drove investors to safer assets, Rian Howlett reported for Yahoo Finance.

The resulting spike in energy prices has stoked inflation fears in the US,

Bullion climbed as much as 1.1% to top $5,380 an ounce, adding to a gain of more than 3% over the previous four sessions as conflict reverberated across the region.

President Donald Trump said the US would continue its military offensive for as long as it takes, and Israel announced a “wave of strikes” targeting Iran’s command centers.

Tehran attacked oil and gas infrastructure and threatened shipping in the strategic Strait of Hormuz.

The resulting spike in energy prices has stoked inflation fears in the US, causing Treasuries to slump and raising the likelihood that the Federal Reserve will leave interest rates unchanged for longer.

Traders are now pricing in a rate cut by September, later than previously estimated.

While higher rates may weigh on gold because it does not pay interest, they can also reinforce bullion’s role as a store of value.