Gold nearing the year’s high amid US-Iran rift

  • The US-Iran tussle is getting serious with few other political giants supporting the US over its latest claims.
  • US Dollar (USD) weakness also plays a role in fueling the safe haven.

Safe havens including Gold are on the bids as a recent tussle between the US and Iran over 2 oil tankers’ blast in the Gulf of Oman turns serious. The yellow metal is taking the rounds of $1344 during the initial Asian session on Friday.

Following the blast, the US said it has proofs that Iran was behind the attacks while Reuters recently quoted anonymous official mentioning that the video clip clearly shows Iran’s Revolutionary Guard (IRGC) approaching the vessel and removing the mine.

Adding to the allegations was the UK’s Foreign Minister, Jeremy Hunt that recently confirmed to start their own assessment with the US view of Iran being the hand behind the incident, as per the BBC report.

Reuters came out with the story quoting the US military that doesn’t prefer opening up new conflict in the Middle East but might not refrain from securing the national interest.

On the other hand, the Iranian mission to United Nations categorically rejected that “the US unfounded claim" regarding Gulf of Oman tanker attacks.

Other than geopolitics, data-driven weakness of the US Dollar (USD) also seems to help the bullion.

Traders might be interested in the upcoming China data dump and the US retail sales during the later part of the day to determine near-term trade direction.

Technical Analysis

Having cleared $1342 resistance, the yellow metal needs to successful cross the current month high around $1348 in order to aim for April 2018 tops near $1365, failing to which can once again drag the quote to $1320 and then to April 2019 high near $1310.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD rises above 1.1200 amid some USD weakness

EUR/USD is trading above 1.1200, recovering some of the losses. Earlier, ECB officials expressed concern about global growth President Draghi speaks later. Tension is rising toward the Fed decision.


GBP/USD falls to the lowest since January

GBP/USD is trading around 1.2550, the lowest since January. Sterling has been under pressure amid growing uncertainty about Brexit and USD strength.


USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.


Gold recovers early lost ground, back above $1240 level

Gold recovered a major part of its early slide and moved to the top end of its daily trading range, above the $1340 region post-US data.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more