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Gold Soars above $1,600 after Iran Retaliates

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Gold futures contracts soared higher during the Asian trade session on Wednesday. The headline spot futures contract jumped almost two percent to trade above $1,600 per ounce after Iran launched missile attacks against U.S. military bases in the region.

This attack is in response for the United States eliminating a top Iranian General at the end of last week. The missiles were launched against bases in Iraq and, so far, no injuries or casualties have been reported.

As of 1 am GMT, the spot gold futures contract was up 1.9 percent to trade at $1,603.21 per ounce. Earlier in the session the spot contract hit its highest price level since March 2013 at $1,610.90 per ounce.

U.S. gold futures, for front end delivery, also spiked higher. This contract gained two percent to trade at $1,605.80 per ounce.

Looking at other metals futures contracts, palladium is at a new all-time high at $2,056.01 an ounce as there is a supply shortage. This contract last traded down 0.6 percent at $2,040.57.

The silver futures contract jumped 1.2 percent to trade at $18.60 per ounce. This is its highest price point since September. The platinum futures contract added 0.3 percent to trade at $973.95.

Gold Traders watch Iranian Missile Attacks as Tensions continue to Mount Higher

The yellow metal is considered a safe haven asset. Worried traders flew to safe havens after the Iranian missile attack on U.S. led forces in Iraq early Wednesday morning. This response comes after the funeral for a top Iranian general who was killed, last week, in a U.S, drone attack. Tensions in the Middle East have spiked higher.

The United States has since confirmed the attack and President Donald Trump had been briefed. The situation is being monitored.

In trade headlines, there are reports that China will not increase its annual import quotas for corn, wheat and rice. This could be a stumbling block for the “phase one trade agreement” that is expected to be signed on January 15.

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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