Gold hit its highest level since 2013 as tensions between the U.S. and Iran are pushing investors toward safe haven assets while putting the precious metal to its longest win streak in a couple of years.
The price of gold futures expiring in February are up 1.8% to $1,578.70 an ounce in New York on Monday, according to The Wall Street Journal, which is its highest price since April 2013. Gold also is on track for its ninth straight up day, the longest streak of gains since January 2018 when a weakened dollar prompted an 11-day rally.
A lot of people who stocked up on gold during the summer amid growing fears of recession are likely feeling a lot better about their investment as we begin the new year.
Today’s surge came after U.S. President Donald Trump again threatened to strike Iranian cultural sites if tensions between the two countries continue to escalate in the aftermath of an American strike on Iranian Major General Qassem Soleimani in Iraq. Fears of a potential war have added more fuel to the rally gold already was having in late December.
“The move that we’ve seen in the past few days is clearly related to the escalation in the Middle East,” Julius Baer Group economist Norbert Rucker told TWSJ. “The attack sent some tremors that were felt beyond the oil market itself and resulted in a flight to safety, which is exactly what we’ve seen in the gold market.”