Gold prices rose on Friday as the dollar gained ground against most major rivals amid strong haven demand with the Middle East erupting once more. 

Israel targeted Iranian nuclear and military facilities, in addition to army commanders and scientists with extensive air strikes, adding that it’s only the start of a prolonged operation. 

The VIX fear index on Wall Street surged 13.45% to 20.44, with a surge as well in both oil and gold prices. 

The University of Michigan’s consumer confidence index rose 15.9% this month to 60.5, above estimates of 53.5.

As for the consumer expectations index, it rose 21.9% to 58.4. 

Otherwise, the dollar index rose 0.3% as of 20:47 GMT to 98.1, with a session-high at 98.5, and a low at 97.6.

On trading, gold spot prices rose 1.5% today to $3452.8 ounce, sending this week’s profit to 3.2%.

US stock indices slumped on Friday amid surging geopolitical tensions in the Middle East after Israel’s extensive air strikes against Iranian targets.

Israel targeted Iranian nuclear and military facilities, in addition to army commanders and scientists, adding that it’s only the start of a prolonged operation. 

The VIX fear index on Wall Street surged 13.45% to 20.44, with a surge as well in both oil and gold prices. 

On trading, Dow Jones fell 1.1% as of 16:16 GMT, or 512 points to 42,470 points, while S&P 500 shed 0.7%, or 40 points to 6005 points, as NASDAQ gave up 0.8%, or 160 points to 19,500 points.

Copper and other industrial metals lost ground on Friday as the dollar gained ground with investors selling off high-risk assets following Israel's attack on Iran. 

Copper three-month futures fell 1.3% at the London Metals Exchange to $9575 a ton the lowest since June 3.

Conversely, the dollar index gained ground, while global markets declined as the risk appetite soured following the Israeli attack.

A stronger dollar makes the greenback-denominated metals futures costlier to holders of other currencies. 

Copper fell 1.9% at the US COMEX Exchange to $4.74 a pound, raising the price premium with the London Exchange to $879 a ton.

While most metals dropped today, aluminum futures bucked the trend with a 0.4% climb at the Shanghai Exchange, boosted by strong local demand.

At the London Exchange, aluminum fell 1.2% to $2487 a ton, while zinc shed 1.7% to $2598, while lead lost 0.3% to $1991, as nickel gave up 0.2% to $15,165, while tin slipped 0.1% to $32,600 a ton.

Bitcoin lost ground below $105,000 after news about Israel’s strike on Iran, with the price previously approaching coveted record highs above $110,000 before dropping once more. 

Earlier Israeli strikes on Iran today sent bitcoin down to $102,953, threatening to pierce the psychological barrier of $100,000, with traders liquidating positions worth over $450 million in a single day according to CoinGlass data.

When prices fall, traders who are highly leveraged are stopped out of their positions, which cascades into a selloff wave.

Binance data also showed the Net Taker Volumes, an index tracked by Binance, at $197 million, which indicates aggressive market orders, in this case with sell positions.

Technical Analysis Offers Little Respite 

Technically, bitcoin seems to be heading southward according to several indicators, such as the 20-day SMA and the MACD.

Intensive geopolitical escalation between Israel and Iran could send the price even lower towards $91,672.

On the flip side, a strong return of bulls and stabilization above the 20-day SMA could pave a way for a recovery towards the record near $112,000.