Precious metals miners well bid as Iran strikes stock safe haven gold demand Proactive uses images sourced from Shutterstock
Precious metals miners led gains in London on Monday as gold climbed to record highs following the US and Israeli attack on Iran, with investors rushing into safe-haven assets.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2), the FTSE 100 gold producer, Fresnillo PLC (LSE:FRES), the Mexican silver and gold miner, and Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN), the South Africa-focused gold company, all moved higher in early deals as spot gold surged 2.6% to top $5,411.39 an ounce.
The advance built on a rise of more than 3% recorded last week, with silver also climbing as geopolitical risk intensified sharply over the weekend.
The US and Israel launched strikes on Iran on Saturday, killing supreme leader Ayatollah Ali Khamenei. Tehran responded with waves of missile attacks on targets across multiple countries, including damage to Dubai Airport, deepening fears of a broader regional conflict.
Gold is traditionally sought by investors during periods of political and military uncertainty, as it is seen as a reliable store of value when other assets come under pressure.
The latest surge takes the precious metal well above the $5,000 an ounce level it breached earlier this year, a milestone that has drawn significant attention from both institutional and retail investors.
Mining stocks with high exposure to gold output tend to act as leveraged plays on the underlying metal price, as rising revenues feed directly through to margins when production costs remain relatively fixed.
Endeavour rose 4%, Fresnillo 2%, while FTSE 250-listed Pan African was up 4% in early trading.