Gold jumped more than 1% in trading on Tuesday amid rising tensions in the Middle East as Israel's attack on Hezbollah sparked an Iranian advance that launched more than 200 missiles.
At 9.20am, the price of gold was at $2,659.08 which is down a slight 0.16% since it opened in early trading on Wednesday.
Market sentiment is now geared towards risk aversion as investors' focus shifts from better-than-expected US jobs data to steady business activity in the manufacturing sector.
ABC media reported that Iran launched around 240 to 250 missiles towards Israel. In the meantime, Israel revealed that the air force will continue to attack its targets in Lebanon and the US Security Adviser, Sullivan said the war situation suffered a severe collapse on the attack.
Kico analyst Jim Wyckoff in his statement predicts gold and silver prices will break new record highs again if Iran continues its giant attack on Israel.
However, the US Dollar Index (DXY) rose 0.43% to 101.19 points and limited gold's surge higher.
