Gold Surges To Test $1,600/oz, Oil Over $70, Stocks Fall on Risks of World War In Middle East

Last update January 7, 2020

Mark O'Byrne January 7, 2020 SNB & CHF

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Summary:
◆ Gold has surged to test ,600 per ounce, up 4% so far in 2020 and building on the stellar near 18.9% gain in 2019 ◆ Gold is testing it’s highest levels since 2013 as investors diversify into gold; Goldman, Citi and other gold analysts are advocating gold bullion as important hedge in crisis ◆ Oil prices have surged with Brent crude reaching per barrel; concern over oil supplies from Iran, Iraq and other nations as U.S. State Department warns of attacks on Saudi oil facilities ◆ Stocks in Europe and Asia have fallen with U.S. stock futures down; the German Dax closed 1.5% lower and the Japanese Nikkei fell 1.1% ◆ Escalating U.S.-Iranian, U.S.-Iraqi, U.S.-China and U.S.-Russia tensions lead to demand for safe haven gold; the U.S.has now threatened to hit

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◆ Gold has surged to test $1,600 per ounce, up 4% so far in 2020 and building on the stellar near 18.9% gain in 2019

◆ Gold is testing it’s highest levels since 2013 as investors diversify into gold; Goldman, Citi and other gold analysts are advocating gold bullion as important hedge in crisis

◆ Oil prices have surged with Brent crude reaching $70 per barrel; concern over oil supplies from Iran, Iraq and other nations as U.S. State Department warns of attacks on Saudi oil facilities

◆ Stocks in Europe and Asia have fallen with U.S. stock futures down; the German Dax closed 1.5% lower and the Japanese Nikkei fell 1.1%

◆ Escalating U.S.-Iranian, U.S.-Iraqi, U.S.-China and U.S.-Russia tensions lead to demand for safe haven gold; the U.S.has now threatened to hit Iraq with “very big” sanctions like “they’ve never seen before ever” in Trump’s words

◆ Trump warned in a tweet on Saturday night that if Iran strikes any Americans or American assets, the United States has targeted 52 Iranian sites, “some at a very high level & important to Iran & the Iranian culture”

“They attacked us, & we hit back. If they attack again, which I would strongly advise them not to do, we will hit them harder than they have ever been hit before!” warned Trump on Twitter as American foreign policy hawks back Trump’s aggressive war mongering stance

◆ China and Russia have called for restraint and urged the U.S. to seek dialogue with Iran instead of ‘force’; Russia condemned the killing Of Iran’s Soleimani and warned the U.S. of ‘grave consequences’

◆ “China opposes the use of force in international relations,” Chinese Foreign Minister Wang Yi said.

“Military means will lead nowhere. Maximum pressure won’t work either. China urges the U.S. to seek resolutions through dialogue instead of abusing force.”

◆ “History shows that under most outcomes gold will likely rally to well beyond current levels,” according to Goldman analysts in a note. That’s “consistent with our previous research, which shows that being long gold is a better hedge to such geopolitical risks.”