Gold Prices Surge in UK Amid US-Iran Confrontation
US military strikes on Iranian tankers in the Strait of Hormuz pushed crude oil above $100 per barrel, triggering a safe-haven bid that ran through Asian, Middle Eastern, and European markets before arriving in London. The London Bullion Market Association morning fix came in at £105.60 per gram for 24-karat gold, with the PM fix closing at £105.78. Retail dealers across London, Birmingham, and Manchester applied their standard overnight premium to open at £105.80 per gram, the highest single-session close since late August.
The rally carries two active supports: geopolitical risk premium from the US-Iran military confrontation and pre-positioning ahead of the September 16 Federal Reserve and September 18 Bank of England decisions. Buyers with a 12-month-plus horizon may find the risk/reward reasonable, particularly given the JPMorgan $4,600 projection and sustained central bank accumulation.
The primary downside risk is a rapid de-escalation in Iran, which could remove the geopolitical premium within days. The upcoming rate decisions will set the price trajectory through the end of September.