Israel said its infantry and tanks had carried out raids deep inside the Gaza Strip, its first announcement of a shift from air warfare to ground operations to root out Hamas fighters, a week after their deadly attack in southern Israel.
The news boosted inflows into assets considered safe, such as gold.
“Investors are fleeing to safe assets as risks increase due to tension in the Middle East,” said Edward Moya, market analyst at OANDA.
“If the geopolitical situation becomes bleaker, there is a good chance that gold prices will reach $2,000 this year. We have gone from $1,800 to $1,900, $2,000 is just a fraction of that,” he added.
U.S. consumer prices rose in September due to rising rent and gasoline costs, but underlying inflation is slowing, data showed Thursday.
Spot silver rose 4.3% to $22.78 an ounce, its first weekly rise in three weeks.
Platinum rose 1.2% to $879.28, while palladium fell 0.3% to $1,141.69 to record a weekly decline.