Gold surged to the highest level in more than six years as fast-rising tensions in the Middle East stoked demand for haven assets, with Goldman Sachs Group Inc. saying that bullion offered a more effective hedge than oil to the crisis. Palladium extended gains to an all-time high.
Bullion neared $1,600 an ounce as Tehran said it would no longer abide by any limits on its enrichment of uranium following the killing of General Qassem Soleimani. In addition, President Donald Trump said he was prepared to strike Iran “in a disproportionate manner” if it retaliates against any U.S. target.
Spot bullion climbed as much as 2.3% to $1,588.13 an ounce, the highest level since April 2013, and traded at $1,574.29 at 7:17 a.m. in London. Futures gained as much as 2.5% to $1,590.90. Palladium jumped 1.5% to $2,019.73 an ounce, a fresh record, while silver and platinum also rose.
Source : Bloomberg