Gold and oil prices receded on Friday afternoon after initially spiking due to Israel’s overnight attack on Iran.
An unnamed regional intelligence source reported during the day, as per CNN, that direct confrontations between Israel and Iran were now “over,” and it was unlikely that Iran would retaliate against the latest strike.
This update follows last week’s attack by Iran, with engagements between the two nations appearing contained for now.
Iranian officials also informed Reuters that there were no immediate plans for retaliation.
Following the news, gold prices dropped to sit 0.3% lower at US$2,379 for the day, while benchmark Brent Crude decreased by 1.3% to US$86.45 a barrel.
Previously, gold had surged past the US$2,400 per ounce mark for the second time in a week following news of the Israeli strike, nearly reaching all-time highs. The price of gold had increased by 1.6% within an hour to a high of US$2,415 overnight, before retreating.
Oil prices similarly saw an increase; Brent crude reached a high of US$90.69 a barrel overnight, climbing by 4.4%, before diminishing.
The US equivalent, West Texas Intermediate, was up 4.5% overnight at US$86.23 a barrel.
Early on Friday morning, explosions were reported near the Iranian city of Isfahan.
US sources indicated that Israel had conducted a missile strike on Iran overnight, with Iran claiming to have destroyed three drones in the attack.
Iran later stated that no missiles had impacted its territory, noting that Isfahan, home to an air base and several military sites including nuclear facilities, did not sustain any damage.
The Israeli action followed an attack by Iran involving missiles and drones last week, with Iran having previously threatened a response earlier this week.
Swissquote analyst Ipek Ozkardeskaya had earlier commented on the commodities market, suggesting, “We will likely see a further flight to safety before the weekly closing bell due to fears of further escalation of tensions over the weekend.”
