The U.S.-Israel strike on Iran escalated tensions across the Middle East, sending oil and gas prices sharply higher and sparking a surge in safe-haven demand. Physical gold holdings saw inflows as investors sought to hedge against geopolitical risk, driving the ETF’s share price up early in the trading session.

Later in the session, gold prices eased after the ISM Manufacturing PMI unexpectedly dipped to 52.4, prompting a reassessment of the Federal Reserve’s rate outlook. The subsequent rally in the US dollar index and reduced risk aversion pressured gold holdings toward session lows.

Traders are now monitoring whether geopolitical tensions or economic data will dominate price action, focusing on key technical entry levels around prior support zones. With continued uncertainty over Middle East conflict and trade tariffs, underlying support for precious metals remains intact.