• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Investments

Gold nears 7-year high as US-Iran tensions spike

Gold nears 7-year high as US-Iran tensions spike
  • Pedro Gonçalves
  • @PeterHSG
  • 06 January 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

The price of gold rose to its highest level in nearly seven years on Monday as escalating tensions between United Stated and Iran fuelled safe haven demand, while oil has gone past $70 a barrel.

Spot gold surged 1.5 percent to $1,579.55 per ounce in jittery trade making the metal more expensive than it has been since April 2013. Gold was on track to rise for a ninth consecutive day, which would mark its longest run of gains since January 2018.

Related articles

  • Experts urge investors not to reposition portfolios in wake of 'inferno' Iran-US crisis
  • Saudi Aramco loses $200bn since IPO on US-Iran tensions
  • Oil price, energy security a new worry for investors
  • Will Syria crisis derail global recovery? Schroders' Wade comments

Gold "has entered 2020 with strong momentum", Gavin Wendt, senior resource analyst at MineLife Pty in Sydney, said in an email to Bloomberg. "When you factor in ongoing uncertainty with respect to US-China trade talks and heightened security issues with Iran, gold really is a no-brainer."

We’re left waiting to see if we get an aggressive response from Iran with the whole Middle East likely feeling vulnerable"

Bullion is often seen as an alternative investment during times of political and financial uncertainty.

Though the upward momentum in Brent prices suggests some expectation that the recent escalations will lead to oil supply disruption, Goldman analysts suggested that the range of possible outcomes is too large for this to be accurately priced in.

"The range of potential scenarios is very large; spanning oil supply shocks or even oil demand destruction — which would be negative to oil prices. In contrast, history shows that under most outcomes gold will likely rally to well beyond current levels," global head of Commodities Research Jeffrey Currie and his team said in a note.

US president Donald Trump warned of a "major retaliation" if Iran hit back and also threatened sanctions against Iraq, which on Sunday called on for US and other foreign troops to leave as a backlash grows.

"We found that spikes in geopolitical tensions lead to higher gold prices when they are severe enough to cause currency debasement," Wall Street bank Goldman Sachs said, adding an escalation in US-Iranian tensions could further boost gold prices.

Oil prices are also rising as as escalating tensions in the Middle East fanned worries about disruption to global oil supplies.

Brent crude oil soared past $70 a barrel, rising more than 2% on Monday, while West Texas Intermediate crude rose 1.8% to $64.21.

Iran said on Sunday it no longer considers itself bound by the 2015 nuclear deal negotiated with the US and other world powers in the fallout from the killing of Soleimani. It added that it has to "settle a score with the US".

The US State Department said there was "heightened risk" of missile attacks near military bases and energy facilities in Saudi Arabia.

"We're left waiting to see if we get an aggressive response from Iran with the whole Middle East likely feeling vulnerable," said Deutsche Bank strategist Jim Reid.

 

Subscribe to International Investment's free, twice-daily, newsletter

 

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Investments
  • Middle East
  • Goldman Sachs
  • Gold
  • Oil
  • Commodities
  • Iran
  • US
  • Geopolitics

More on Investments

US female investors reluctant to pay a financial adviser - report

  • Investments
  • 18 February 2021
Jersey regulator says new Woodford firm has not applied for authorisation

  • Investments
  • 18 February 2021
CISI launches anti-money laundering partnership with Qatari regulator

  • Regulation
  • 16 February 2021
Cyprus tells investment summit it's in 'prime position' for EU markets access

  • Investments
  • 05 February 2021
EFAMA urges 12-month extension to implenting new PRIIPS rules

  • Regulation
  • 04 February 2021
Back to Top

Most read

HSBC Singapore CEO to leave for Saudi British Bank
HSBC Singapore CEO to leave for Saudi British Bank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading