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Gold Hits 4 Month High on ME Tensions

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The spot gold futures contract, during today’s Asian trade session, at one point, hit a four month high price point. Traders are monitoring developments in the Middle East after a top Iranian general was killed at the Baghdad airport by the United States.

The U.S. dollar was also trading lower. A weak dollar tends to support the anti-fiat yellow metal making it less expensive for traders using other currencies to buy, store and insure.

The top headline, right now, is that Iranian Major-General Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis have been killed during a U.S. airstrike that targeted their convoy at the Baghdad airport. The U.S. Pentagon has confirmed this attack.

As of 2:50 am GMT, the spot gold futures contract was trading up 0.6 percent at $1,538.42 per ounce. Earlier in the session the spot contract hit 1,540.48. This is this contract’s highest level since September 5.

For the week, so far, the spot contract has gained 1.9 percent and is on track for its fourth week in a row of gains.

U.S. gold futures, for front month delivery also rose. This contract was up 0.9 percent to trade at $1,541.20 per ounce.

Gold Traders Monitor Military Tensions in the Middle East between the U.S. and Iran

Overnight, the United States launched a series of missiles aimed at the Baghdad airport. The U.S. has killed Iranian General Qassim Soleimani. He was head of the Iranian elite Quds Force.

The U.S. also killed Abu Mahdi al-Muhandis. He was the deputy commander of Iranian backed militias. This attack has been confirmed by both American and Iranian officials and is being viewed as a major military escalation between the two countries.

On the economic calendar, for today, the United States will also publish ISM manufacturing PMI data. The Institute for Supply Management (ISM) manufacturing purchasing managers’ index (PMI) data will be released during the North American trade hours at 4 pm GMT.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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