Gold prices hit a record high in Asian trade on Monday as increased geopolitical tensions in the Middle East boosted safe haven demand, while a broader rally across metal markets also spilled over into the yellow metal.

Spot gold rose nearly 1% to a record high of $2,440.56 an ounce, while gold futures expiring in June hit a record high of $2,444.55 an ounce.

Middle East stability in focus after Iran helicopter crash 

Media reports over the weekend showed that a helicopter carrying Iranian President Ebrahim Raisi and his foreign minister crashed amid bad weather conditions on Sunday.

Rescue efforts were underway, but Reuters quoted Iranian officials stating that their lives were at risk.

Raisi was seen as a contender to become Iran’s next supreme leader, and was also regarded as a major hardliner on cracking down against domestic protests and implementing more morality laws. 

Gold prices had shot up to record highs in April on fears of a war between Israel and Iran, although such a scenario did not materialize. But the prospect of any more instability in the Middle East now appeared to be boosting the yellow metal once again. 

Israel also kept up its strikes against Gaza, keeping tensions in the region high. 

Elsewhere, increased military action between Russia and Ukraine also supported safe haven demand, as both countries launched strikes against each other over the weekend. 

Gold, precious metals boosted by broader rally 

Other precious metals also advanced on Monday. Platinum futures rose 0.2% to $1,096.50 an ounce, while silver futures surged 3.2% to an over 11-year high of $32.285 an ounce. 

Broader metal prices were underpinned by growing expectations of a U.S. interest rate cut this year, while expectations of increased demand and tighter supplies- particularly in industrial metals- also boosted prices.

Focus this week is on more cues from the Federal Reserve, after some soft U.S. inflation readings for April ramped up hopes the central bank will begin trimming rates by as soon as September.