Wednesday 8 January 2020 6:17 AM UTC
LONDON Jan 8: Gold prices hit their highest level since 2013 on Monday as the crisis deepened over the US assassination of Iran’s most senior military leader Qasem Soleimani.
Gold futures (GC=F) were treading water in early trading on Tuesday in London, at around $1,568 an ounce.
Fears are growing of Iranian retaliation and continued escalation of tensions by US president Donald Trump after the drone strike in Baghdad, and of threats to armed forces and civilians from the US and its allies in Iraq.
US officials have denied claims American forces could be pulled out of Iraq, while the UK government is reported to be making contingency evacuation plans.
“There’s no escalation in the geopolitical situation, but the tensions have not receded completely and because of that after a good correction in gold, prices have bounced,” Jigar Trivedi, a commodities analyst at Anand Rathi Shares & Stock Brokers in Mumbai, told Reuters.
Gold is widely seen as a safe haven amid heightened political and economic uncertainty as it is seen to keep its value more reliably than equities.
“If things de-escalate then gold will hit lower quite quickly. We would see it go down below $1,500,” a senior market analyst for the Asia-Pacific region at OANDA, also told Reuters.
CLICK TO FOLLOW UKMALAYALEE.COM