Gold refreshes multi-year top to cross $1600 amid calls of Iran attacks

• 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