- Gold extends its northward trajectory to the levels last seen in April 2013.
- Iran retaliates to the US killing of the key Quads force person Qasem Soleimani.
- Markets are now rushing to risk-safety but will also keep eyes on the US President Trump for further direction.
Gold prices remain solid around $1,605, after a high of $1,605.65, during early Wednesday. The safe-haven recently benefited from the news from Iraq where the US facilities have been attacked by Iranian forces.
Iran begins operation “Martyr Soleimani”…
Multiple locations in Iraq, including the al Asad airbase that hosts US forces, are under attack by the Iranian forces. Bloomberg recently came out with the news mentioning that Iran has started operation “Martyr Soleimani” with several rockets being fired at Ayn al-Asad base in Iraq. The Middle East nation is taking revenge on the US killing of the key Quad force personnel during the late last-week.
As a result, the market’s risk tone has nosedived and so do the bond yields. The US 10-year treasury yields drop more than 7 basis points to 1.72% by the press time.
Read: Trump briefed on reports of attacks on Iraq air base - White House - Reuters
Following that, Reuters came out with the news mentioning the quote from Pentagon as saying, “we will take all necessary measures to protect and defend US personnel, partners and allies in the region.”
Traders are now all running towards the risk-safety and hence Gold and Japanese yen (JPY) are their best bets. As a result, these assets are likely to keep being the Bulls favorite until the dust settles.
It’s worth mentioning that the prices could witness a higher boost if the US also indulges in the fire-game.
Technical Analysis
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends losses toward 1.1100 on increased dovish ECB bets
EUR/USD accelerates decline toward 1.1100 in European trading on Friday. Softer French and Spanish inflation data ramped up Oct ECB rate cut bets, weighing on the Euro. However, the downside could be cushioned by a wobbly US Dollar, as US PCE inflation looms.
USD/JPY slides 1% toward 143.00 as Ishiba wins LDP leadership race
USD/JPY is seeing a fresh sell-off toward 143.00 in the European session on Friday. The pair loses over 300 pips, as the Japanese Yen rebounds on Shigeru Ishiba's win in the LDP leadership run-off. Sanae Takaichi, who favored keeping interest rates lower, was expected to win the race.
Gold price pulls back from record high ahead of US PCE Price Index, bullish bias remains
Gold price attracts some sellers on the last day of the week and retreats further from the all-time peak, around the $2,685-2,686 region touched on Thursday. The downtick is sponsored by the emergence of some US Dollar buying, which tends to undermine demand for the commodity.
US core PCE set to show continued disinflation trend, reinforcing Federal Reserve easing cycle
The core Personal Consumption Expenditures Price Index is seen rising 0.2% MoM and 2.7% YoY in August. Markets have already priced in near 50 bps of easing in the next two Federal Reserve meetings. A firm PCE result is unlikely to move the Fed’s stance on policy.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.