Gold prices increased while Asian stocks mostly declined on Monday due to escalating geopolitical tensions in the Middle East following Iran’s unprecedented attack on Israel.

Major Asian indices such as Japan’s Nikkei 225 and South Korea’s Kospi experienced declines of over 1% in morning trade, while Hong Kong’s Hang Seng Index dropped by 0.8%.

However, China’s Shanghai Composite Index saw a rise of 1.2%.

The price of spot gold rose by 0.6% to $2,358 per ounce on Monday, following its all-time high of $2,431 per ounce on Friday amidst concerns over potential Iranian aggression against Israel.

Gold has surged by 18% this year, with US gold futures also increasing by 0.1%, marking a 15% rise for the year.

Oil prices, which had climbed on Friday in anticipation of retaliation from Iran, slightly retreated during Asian trading hours on Monday, CNN has reported.

This pullback was attributed to the minor damage caused by Iran’s attack, according to Israeli military officials.

Nonetheless, US crude futures have seen a 6.7% increase this year, while Brent crude, the global oil benchmark, has surged by over 10%.

Analysts from ANZ noted that heightened tensions in the Middle East amid worsening geopolitical conditions have kept commodity markets on edge.

Written by B.C. Begley