Gold prices steadied after shooting up to a near six-year high on Friday, surpassing the key $1,400 level on dovish signals from major central banks and rising tensions in the Middle East.
Spot gold was up 0.1% at $1,388.60 per ounce at 0958 GMT, after earlier hitting its highest since Sept. 2013 at $1,410.78.
U.S. gold futures dipped 0.3% to $1,392.1.
“The Iranian tensions provided the catalyst for gold to inch above $1,400, after threatening to break above that level since yesterday’s dovish Fed outcome,” said Howie Lee, an economist at OCBC Bank.
“There is a perfect mix of ingredients for gold’s rush to the top a weak macroeconomic environment, low bond yields, soft dollar and rising geopolitical tensions.”
Iranian officials told Reuters on Friday that Tehran had received a message from U.S. President Donald Trump through Oman overnight warning that a U.S. attack on Iran was imminent.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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