“We’re seeing some safe-haven demand flowing into gold, which relates to the Israeli strikes on Iran’s embassy in Syria,” said Daniel Ghali, commodity strategist at TD Securities.

The latest leg up in gold prices is probably also associated with short covering from family offices and proprietary trading shops, Ghali added.

Iran vowed to take revenge on Israel for an airstrike on the Iranian embassy compound in Damascus.

Saxo Bank’s Ole Hansen said an underlying bid from retail and central banks was being joined by momentum-following speculators who have extended their already elevated longs following gold’s break above $2,200.

The mix of bullish tailwinds has driven bullion nearly 10% higher so far this year.

“What makes the gold rally so unusual is that it is occurring despite significant traditional headwinds with the U.S. dollar rising, Treasury yields rising, the likelihood of higher for longer U.S. rates increasing,” said independent analyst Ross Norman.

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