Gold climbed in early Asian trading as escalating U.S.-Iran tensions boosted demand for the precious metal. Iran launched missiles, drones and small-boat attacks against U.S. warships near the Strait of Hormuz, according to a U.S. Central Command statement reported by the WSJ. The U.S. military intercepted the threats and struck Iranian military sites responsible for the attacks, marking a significant escalation in already strained relations between the two nations.

Spot gold rose 0.4% to $4,697.55 per ounce as investors weighed geopolitical risks against monetary policy expectations. Bas Kooijman, CEO of DHF Capital, noted that market participants are focusing on the upcoming U.S. employment reports for signals about economic strength and Federal Reserve policy direction. The safe-haven bid for gold persists as traders assess whether Middle East tensions will continue escalating.

The conflict threatens one of the world's most critical energy chokepoints, with roughly a fifth of global oil shipments passing through the waterway. Any disruption to tanker traffic could send crude prices higher and amplify market volatility across asset classes. Investors are closely monitoring whether the exchange marks the start of a broader regional escalation or remains an isolated incident.