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 Source: Bloomberg

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.


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