Gold strikes record high in aftermath of Iranian President’s death
Gold prices reached a new high as demand for safe-haven assets In London trade on Monday surged due to heightened geopolitical tensions in the Middle East
Gold prices reached a new high as demand for safe-haven assets In London trade on Monday surged due to heightened geopolitical tensions in the Middle East particularly on the death of the Iranian president. The yellow metal continued its optimistic surge, hitting the long-awaited milestone of $2431.
The confirmation of the breach of this level by price action opens the door for more increases and optimistic targets, with the $2,500 per ounce barrier being anticipated to be the next major station.
It is believed that Iranian President Ebrahim Raisi and Foreign Minister Hossein Amirabdollahian perished in a helicopter crash.
According to Iranian official media, Raisi, Amirabdollahian, and other people were not found alive at the scene of the chopper accident.
Semi-official news source Mehr News quoted the head of the Iranian Red Crescent Society as saying that there was “no sign of surviving passengers” at the crash scene.
No formal confirmation of the president’s passing has been provided. The helicopter’s wreckage was visible on a steep hillside in drone footage the state media outlet FARS News Agency released.
On Sunday evening local time, Raisi’s helicopter crashed while he was returning from the dedication of a dam on Iran’s shared border with the Republic of Azerbaijan.
To maintain high tensions in the area, Israel continued its attacks against Gaza.
The demand for bullion assets was further bolstered by heightened military action between Russia and Ukraine, as both nations launched strikes against one another over the weekend.
The gold market’s fundamentals continue to point to a bullish trend for the near future, with a caveat that a new intraday bearish correction could occur if the market is unable to consolidate above $2431.
Growing predictions of a U.S. interest rate decrease this year supported higher prices for a wider range of metals, anticipations of higher demand and limited supply—particularly for industrial metals—also helped to drive up prices.
This week’s focus is on more signals from the Federal Reserve, as some weak April U.S. inflation data heightened expectations that the institution may start reducing interest rates as early as September.
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