Gold price: surges to six-year high US-Iran tensions escalate
The price of gold climbed to a six-year high on Tuesday as investors grow increasingly worried about the impact of escalating US-Iran tensions.
Gold edged close to reaching a six-year high on Tuesday as investors ploughed into the commodity looking for a safe-haven from escalating US-Iran tensions and deteriorating US-China trade talks.
Investors also move significant levels of capital to other safe-haven investments like government bonds, as well as favouring the Japanese yen and Swiss franc over the US dollar.
Gold climbs more than 10% in June
The value of gold has risen by more than 10% this month, edging above $1,400 an ounce for the first time since August 2013.
In response, the US dollar sunk to a three-month low against the euro and to its weakest level against the Japanese yen.
The strength of the yen against the dollar was helped by the US Federal Reserve once again hinted at cutting interest rates, weakening demand for the greenback.
The also benefitted from investors growing increasingly worried about the fallout of escalating US-Iran tensions, with the latter arguing that ongoing sanctions imposed by President Donald Trump have shut the door to diplomacy between the two powers.
Oil prices edge higher on US crude stocks data
Oil prices edged higher on Tuesday offsetting earlier declines caused by fears of weakening global demand, with investors expecting the latest stockpile data to show US reserves have fallen.
Brent crude futures climbed 27 cents to $65.13. Meanwhile, US crude futures increased by 8 cents to $57.98 a barrel.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 24 October 2019.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.