Gold rallied jumped above $3,400 on Friday, reaching its highest level in over a month, as investors sought safety amid escalating geopolitical tensions and economic uncertainty. The rally came after Israel launched a preemptive strike against Iran, significantly heightening fears of broader conflict in the Middle East. Israeli Defense Minister Israel Katz declared a special state of emergency and warned of an imminent missile and drone attack targeting Israeli civilians. Safe-haven demand was further boosted by growing uncertainty over US trade policy. President Donald Trump threatened to impose unilateral tariffs to pressure trading partners, though Treasury Secretary Scott Bessent suggested the current 90-day tariff pause could be extended. On the economic front, softer-than-expected US consumer and producer inflation data earlier this week increased expectations for additional Federal Reserve rate cuts this year, providing further support for non-yielding assets like gold.