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.

Anil Panchal FXStreet

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.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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