Gold Prices Jump as Middle East Tension Spurs Demand for Haven Assets
Investing.com - Gold prices rose more than 1% on Friday in Asia as tensions in the Middle East intensified after reports said a U.S. airstrike killed a senior Iranian military official.
Gold Futures gained 1.1% to $1,544.25 by 1:45 AM ET (05:45 GMT).
The gains came after reports said a U.S. airstrike on Baghdad killed Qassem Soleimani, the Iranian general who led the Revolutionary Guards’ Quds force.
Iran’s supreme leader, Ayatollah Ali Khamenei, has vowed that “severe retaliation” awaits those who killed the commander, Bloomberg said on Friday.
"Gold prices are expected to remain firm on the possible escalation in geopolitical tensions in the Middle East. Gold prices sustain above $1545 could extend rally towards $1555-1564 in international market," said Manoj Kumar Jain, director at IndiaNivesh Commodities.
"Now $1532 act as major support for gold. At MCX prices sustain above 39700 could extend rally towards 39850-40000 levels. Now, 39500 is likely to act major support for gold," he said.
The yellow metal recorded its biggest annual gain since 2010 last year as looser monetary policy, unrest in regions from Chile to Hong Kong and buying sprees from key central banks and exchange-traded funds supported the haven.
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