US-Iran Conflict: Gold Leads Haven Assets; Surges to 7-month High

• US-Iran Conflict: Gold Leads Haven Assets; Surges to 7-month High

Gold led haven assets on Wednesday after the Islamic Republic of Iran fired 22 missiles at two Iraqi bases housing US troops in Iraq.

Gold rose to $1,613.30 per ounce on Wednesday as investors jumped on the haven asset to curb risk exposure amid growing global uncertainty. The precious metal rose to a seven-year high. Similarly, the Japanese Yen rose against the US dollar as investors abandon the greenback for the Yen.

The US dollar declined against the haven currency from 109.89 recorded prior to the assassination to 108.69.

“Markets tend to overreact to geopolitics when trading is thin, as it has been during the post-holiday period, but investors are right to fret about what is happening in the Middle East,” said a commodities analyst at JPMorgan, Natasha Kaneva.

“Gold is the favoured haven to preserve assets and purchasing power especially in times of stress in other markets,” George Gero at RBC Wealth Management said.

The United Kingdom on Wednesday condemned the attacks, saying “Britain on Wednesday condemned Iran’s missile attacks on Iraqi bases housing coalition military and voiced concern over “reports of casualties” from the strikes.

“We are concerned by reports of casualties and use of ballistic missiles.”