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.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 30 January 2025.
- 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
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
