Gold and other safe-haven assets rose sharply Friday morning after the U.S. took out a top Iranian general in an airstrike in Iraq, prompting a Twitter taunt from U.S. President Donald Trump and fears of more military action in the war-plagued Middle East, where much of the world’s oil supply is located.
Iran never won a war, but never lost a negotiation!
— Donald J. Trump (@realDonaldTrump) January 3, 2020
Gold was up about 1.1% to $1,547.30 by 9 a.m., close to topping its six-year high hit back in September amid growing fears of a recession. The benchmark 10-year Treasury tumbled to 1.82%, more than six basis points, the sharpest decline in a month, while the U.S. dollar bounced up 0.2%, and the Japanese yen ticked up to 107.92 against it, a two-month high, according to CNBC.
Trump ordered the airstrike in Iraq that killed Qasem Soleimani, a top Iranian general, in Baghdad. Soleimani’s death raises concerns over a potential war with Iran breaking out.
Iranian Foreign Minister Mohammad Javad Zarif said Friday that taking out Soleimani was “an extremely dangerous and foolish escalation” to tensions in the Middle East, tensions that seemingly never come to an end.
The US’ act of international terrorism, targeting & assassinating General Soleimani—THE most effective force fighting Daesh (ISIS), Al Nusrah, Al Qaeda et al—is extremely dangerous & a foolish escalation.
The US bears responsibility for all consequences of its rogue adventurism.
— Javad Zarif (@JZarif) January 3, 2020
After first taunting Iran on Twitter, Trump then took a more serious tone in explaining why the Iranian general was executed.
….of PROTESTERS killed in Iran itself. While Iran will never be able to properly admit it, Soleimani was both hated and feared within the country. They are not nearly as saddened as the leaders will let the outside world believe. He should have been taken out many years ago!
— Donald J. Trump (@realDonaldTrump) January 3, 2020
