Gold Soars Over 1,600 Mark – Iran Attacks US Military Bases
Arslan Butt • 2 min read
What’s up, traders.
The precious metal GOLD prices soared over $1,600 to place a high of around $1,611 following the US-Iran tensions. Especially after news about missile attack by Iran. Yesterday, XAU/USD prices soared to trade at $1573.240 after placing a high of $1577.320 and a low of $1555.260. Overall the movement of gold remained bullish throughout the day.
Gold prices edged an inch higher on the back of increasing US & Iran conflicts. On the previous day, gold rose to near its highest level since April 2013, and then it started to fall. Both sides have been giving warnings, and threats to retaliate increased the widespread conflict to the extent that it needed meddling from US Congress. The Congress led a legislation to stop the US President Donald Trump from going to war with Iran.
After a good correction in gold prices on Monday, they rose again on Tuesday as the tensions have not entirely receded as there has been no escalation in the geopolitical tensions. The United States denied a visa to Iranian Foreign Minister Mohammad Javad Zarif. He required it to attend a meeting of the United Nations Security Council in New York on Thursday.
On Sunday, the Iraqi Parliament voted to remove all foreign troops from the country, which was denied by the United States. Meanwhile, Iran announced to abandon the limitations on enriching uranium as part of the 2015 nuclear deal with major powers.
US President Donald Trump said that US has targeted 52 Iranian cultural sites and was prepared to attack the country against the threats of retaliation from Iran over the US assassination of its top military commander Qassem Soleimani. This statement from Trump created chaos, and the United States’ Defence Secretary came out with his statement immediately. He contradicted US President Donald Trump and said that the US military had no plans on hitting Iranian cultural sites.
Hence came the US Congress to limit Trump’s involvement in US military actions that could lead to a war between US & Middle-East. On the other hand, the Iranian Parliament approved a motion that designated the US Army and the Pentagon as “terrorist organization”. They also allocated extra funds to the forces which were once headed by the late Qassem Soleimani.
Gold is considered the safest investment at times of geopolitical crisis and economic uncertainties. The USn& Iran conflict raised the gold prices to the highest level in 7 years, the highest point this week. However, any progress in the de-escalation of the US & Iran conflict would definitely cause a fall in gold prices, which is not expected soon.
Gold – XAU/USD – Technical Levels
Key Trading Level: 1570.29
Gold’s bullish bias continues to dominate the market. Earlier today, the metal soared dramatically to place a high of around 1,611 following an increase in the US-Iran conflict where Iran fired more than a dozen of missiles on the US military bases. Gold has already retraced back, and now it may trade bullish above 1,587 support level. On the higher side, the metal can find resistance near 1,603. Good luck!