Gold surges defying US economic strength amid geopolitical concerns

• Gold prices surged over 1% as US Retail Sales data indicates sustained economic robustness.
• Escalating geopolitical tensions between Iran and Israel heighten demand for safe-haven assets, boosting Gold.
• Strong US economic figures aside, Gold gains from physical demand and its safe-haven appeal amid geopolitical uncertainty.

Gold price climbed more than 1% in the mid-North American session following solid economic data from the United States (US). Consumer spending was stronger than expected, which could prevent the US Federal Reserve (Fed) from cutting borrowing costs, which would be a tailwind for the golden metal. Nevertheless, physical demand for Gold and risk aversion might keep the precious metal at around current levels.

XAU/USD trades at $2,384 after hitting a daily low of $2,324. Investors remain concerned about possible Israeli retaliation following Iran’s missile and drone attack over the weekend. Even though the White House urged Israel against retaliation, Israel’s military chief said, “There will be a response to Iranian missiles and drones launched toward Israeli territory.”