Capital Gold Group Report: Gold Responds to Tensions between Iran, the U.S. and Israel
Comment: In a typical response to political turmoil, gold prices edged up after Iran test-fired 9 long and medium range missiles early today in what its officials say is a response to threats from the U.S. and Israel. The tests "demonstrate our resolve and might against enemies who in recent weeks have threatened Iran with a harsh language," one military official said.
A similar flight to the safety of gold was seen after the December assassination of Benazir Bhutto.
A similar flight to the safety of gold was seen after the December assassination of Benazir Bhutto.
Gold Prices edge up after Iran Test-fires Missiles
NEW
YORK (MarketWatch) -- Gold futures make fractional gains Wednesday, as
rising oil prices and a lower U.S. dollar tied to reports that Iran had
test-fired missiles lent support for the precious metal.
Gold for August delivery gained $3.90 to stand at $927.20 an ounce on the New York Mercantile Exchange.
Earlier, the contract hit an intraday high of $930.
"Speculators hearing one tilt in Iranian rhetoric but seeing quite
another in its actions decided that the safer play for the moment is
either not to let go of a larger part of their positions in the two
commodities or to perhaps buy a few additional units -- just in case,"
said Kitco Bullion Dealers senior analyst Jon Nadler, referring to
traders' appetite for gold and oil.
Iran
test-fired nine missiles earlier Wednesday, including a new version of
the Shahab-3, which is capable of reaching its main regional enemy
Israel, the BBC reported.
Iran and Israel have
engaged in back-and-forth saber-rattling growing out of Tehran's
controversial plans for developing nuclear power.
While Iran has tested
the Shahab-3 missile in the past, the latest launch comes as tensions
have been escalating between Iran, the U.S. and Israel. The U.S.
denounced the test and again urged Iran to abandon its missile program,
the BBC said.
Oil futures were
volatile Wednesday following the news from Iran as well as U.S.
government data that showed bigger-than-expected reductions in U.S.
crude inventories last week.
Crude for August
delivery was last up 63 cents to $136.68 a barrel on the Nymex. Over
the prior two sessions, crude futures plunged by $9.25 a barrel,
pummeled by a rising dollar and economic worries.
On Tuesday, the benchmark gold contract dropped $5.50 an ounce in Nymex action.
"With commodities as a whole in consolidation mode, gold looks set to
remain under pressure in the short term," said James Moore, an analyst
at TheBullionDesk.com.
"However, given the
mounting inflation concerns and the risk of further economic slowdown,
investors will continue to look towards the traditional safe-haven
assets favorably," Moore said in a research note.
Meanwhile, the dollar
traded mixed Wednesday, feeling some modest pressure as
foreign-exchange traders showed an appetite for safe-haven currencies.
News about Iran's
missile tests earlier had put the greenback on the defensive, prompting
gains for the Japanese yen and the Swiss franc, said economists at ABN
Amro.
The U.S. dollar index which measures the greenback against a basket of major currencies, fetched 72.656 Wednesday, from 72.98 late Tuesday.
In other Nymex metals action, September silver gained 22 cents to $18.18 an ounce.
July platinum rose 20 cents to $1,950.60 an ounce and September
palladium added $5.75 to $448.20 an ounce, but September copper dropped
3 cents to stand at $3.67 a pound.Iran's missile tests, Nymex, platinum, silver, U.S. Dollar Index, Capital Gold Group, gold group, gold, gold prices, gold news, gold coins, gold bullion, gold IRA, IRA gold
