Gold costs continued to hover close to report highs days after Center East tensions flared, boosting the safe-haven attraction of bullion.

Gold costs notched one other report shut Monday, with the most-active June contract for gold futures buying and selling 0.37% greater to settle at $2,383 per ounce, and a few say there’s extra room to run.

“The current gold rally has been aided by geopolitical warmth and is coinciding with report fairness index ranges,” Citi wrote in a observe dated April 15.

Demand for the safe-haven asset grew amid escalating tensions within the Center East after Iran fired over 300 drones and missiles immediately at Israel — most of which have been intercepted, due to Israel’s Iron Dome air protection system.

Market watchers are intently monitoring a possible retaliation by the Jewish state, which has vowed to “actual a worth” from Iran.

A major retaliation might result in a wider battle, which might consequently set off renewed shopping for of gold, in addition to a rally in oil costs and strengthening of the U.S. greenback, mentioned Bartosz Sawicki, market analyst at monetary providers agency Conotoxia fintech.

Regardless of that, analysts stay bullish on the yellow steel’s outlook, boosted by continued bodily demand in addition to its attraction as a geopolitical hedge. 

“We undertaking $3,000/oz gold over the subsequent 6-18m,” mentioned Citi’s analysts led by Aakash Doshi, Citi’s North America head of commodities analysis. The monetary gold “worth ground” has additionally moved greater from round $1,000 to $2,000 per ounce, Citi mentioned.

On Friday, Goldman Sachs referred to the gold market as an “unshakeable bull market” and revised upward its worth goal for the yellow steel from $2,300 per ounce to $2,700 by the tip of the yr.

— CNBC’s Gina Francolla contributed to this report.