Gold soars to highest price since 2013 as Trump and Iran escalate threats

Markets Insider

• Gold reached the highest level since April 2013, reaching a high of about $1,588, and was up 1.7% to $1,577 per ounce in London late Monday morning.
• Tensions have escalated after the US killed a top Iranian military chief last week, rattling stock and commodity markets.
• "Gains in the last two trading days have lit a fire under a multi-day surge in gold prices," said one analyst.

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Gold soared as investors flocked to safety amid heightened tensions between Iran and the US.

The precious metal reached an April 2013 high of about $1,588, and was up 1.7% to $1,577 per ounce as of 11:00 a.m. in London (6:00 a.m. in New York).

Gold has soared 7.8% since the end of November 2019.

Tensions have escalated after the US killed a top Iranian military chief last week, rattling stock and commodity markets.

Over the weekend, US President Donald Trump threatened to target 52 Iranian sites "VERY FAST AND VERY HARD" if leaders there retaliate against American interests.

Meanwhile, Iran said it is withdrawing from the 2015 nuclear deal - a move that may be perceived as a step toward obtaining a nuclear weapon.

"The flight to haven assets amid the Middle Eastern tensions has seen gold start 2019 with a bang," said Jasper Lawler, head of research at London Capital Group.

"The precious metals has hit a 7-year high, just short of $1600 per oz. Gains in the last two trading days have lit a fire under a multi-day surge in gold prices that began just before Christmas."

"The combination of a softer dollar and a flight to safety is always a recipe for gold's success" Lawler said.

Get the latest Gold price here.

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