Gold bulls have recovered to safety near $1,900 an ounce from the jaws of $1,700 an ounce after the Middle East's most recent crisis sparked a significant increase on Friday and capped a week of astonishing price swings for the yellow metal.

Spot gold added 3.2% $1,928.42 per ounce meanwhile gold futured advanced by 3.1% at $1,941.50 per ounce.

The increase for spot gold on Friday was the most in a single day since March 17. The current week's rounded-up 5% weekly gain was likewise the most since March.

The current increase in gold prices followed a late-Thursday warning from the Israeli government to evacuate more than 1 million residents of Northern Gaza as the conflict with Hamas heated up. Additionally, rumors that Israel was preparing a significant land invasion of Gaza were spreading.

What's more surprising is that the gold surge occurred as the US Dollar Index, or DXY, moved higher for a second straight day, continuing the greenback's three-month ascent that was only halted by last week's decline. Typically, gold moves against the direction of the dolla