June 13 (Reuters) - Gold prices soared on Friday as investors flocked to safe-haven assets following Israeli airstrikes on Iran, re-igniting fears of a broader conflict in the Middle East.
Spot gold rose 1.7% at $3,439.79 an ounce as of 0923 EDT (1323 GMT), coming within striking distance of its record high of $3,500.05 set in April. Prices gained more than 4% so far this week.
U.S. gold futures added 1.7% to $3,461.
"Israel knocking out Iranian targets is causing a little bit of geopolitical scare in the market. Prices will stay elevated in the anticipation of what is to come, the retaliation by Iran," said Daniel Pavilonis, senior market strategist at RJO Futures.
Israel launched a barrage of strikes across Iran on Friday, saying it had attacked nuclear facilities and missile factories and killed a swathe of military commanders in what could be a prolonged operation to prevent Tehran building an atomic weapon.
U.S. President Donald Trump suggested that Iran had brought the attack on itself by resisting a U.S. ultimatum in talks to restrict its nuclear program.
Softer U.S. inflation prints earlier this week added extra shine to gold, bolstering expectations of interest rate cuts by the Federal Reserve.
Bullion is widely regarded as a safe asset, especially during times of economic turmoil and geopolitical unrest. It also tends to thrive in a low interest rate environment.
Goldman Sachs reiterated its forecast that structurally strong central bank buying will raise the gold price to $3,700/toz by end-2025 and $4,000 by mid-2026. BofA sees a path for gold to rally to $4,000/oz over the next 12 months.
On the physical front, demand in major Asian hubs weakened this week as rates soared, with prices in India zooming past the psychologically important 100,000-rupee mark.
Spot silver eased 0.3% at $36.24 per ounce, gaining nearly 1% for the week.
Platinum fell 3.9% to $1,244.91 and was up 6.3% for the week. Palladium fell 0.3% to $1,052.28 but added 0.7% so far this week.
Reporting by Ashitha Shivaprasad and Sarah Qureshi in Bengaluru, Editing by Nick Zieminski
