Gold and Oil edge higher following Israel's retaliation against Iran

Gold’s spike subsides after Israel retaliates against Iran
 

Gold’s fleeting foray back above $2400 today shows that markets are still nervous about the ongoing Middle East conflict.
 

Bullion bulls are seeing tremendous support from persistent geopolitical tensions, adding to tailwinds from central bank and retail investor demand, along with the prospects of Fed rate cuts, albeit delayed.
 

The precious metal may yet retain its upward bias if the Middle East conflict escalates further, though the upside may be capped if the Fed further dilutes bet for rate cuts later this year.
 

Brent briefly touches $90 on Middle East fears
 

Brent spiked higher to touch the $90/bbl mark only to subside after Iran seemingly downplayed Israel’s strikes earlier today.
 

Today’s price action still shows that oil prices are always ready to react to a widening Middle East conflict, which could threaten a third of global supply.
 

If geopolitical fears escalate and supply-side risks are amplified, that should embolden oil bulls in their quest for $100 Brent.