Gold Reaches $1,610/oz Prior to Retreating, Oil Higher and Stocks Lower as Iran Attacks U.S. Bases

from GoldCore

◆ Gold surged to a seven year high at $1,610.90 overnight prior to retreating as markets experience volatility due to the risks of a U.S. retaliation after Iran’s attacks on U.S. bases in Iraq.

◆ The severe, but long expected, re-escalation of geopolitical tensions led to the gold price surging overnight as speculators go long gold futures and investors diversify into the hedging and safe haven asset that is gold.

◆ U.S. stock futures tumbled this morning in response to Iran’s retaliation against the U.S. in rocket attacks on two Iraq bases. The S&P 500 index future lost almost 1.5%, breaking down a key support level at 3,200 points.

◆ Asian and European equity markets followed US futures lower prior to stabilizing, as investors reduced allocations to risk assets and moved into safe havens.

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