The escalation in the Middle East continues to drive the gold price higher. On the night of Monday, the price of a troy ounce (31.1 grams) rose to $ 1,588.13, the highest level since 2013.
By morning, the price had crumbled again, but at $ 1,577.26, it was still 1.61 percent above Friday’s close. The price rise of the past few days has continued as a result of the killing of top Iranian general Qassim Soleimani, ordered by US President Donald Trump. Gold has been in increasing demand as a crisis currency for a few weeks now. At the beginning of December last year, the troy ounce had cost around $ 1,450.
Military escalation threatens
Trump had exacerbated the situation in the Middle East with threats to Iraq on Sunday evening (local time). Only a few days after Soleimani’s killing, events roll over – there is a threat of a military escalation. The Europeans demand restraint from all sides and want to rely on diplomacy.
Hundreds of thousands still mourn in Soleimani in processions, but Tehran has vowed vengeance and is likely to act soon. In this case, Trump had initially only offered the Islamic Republic harsh retaliatory strikes, but now Iraq is also feeling the displeasure of the US president: In the event of a hostile expulsion of the approximately 5,000 US soldiers from the crisis country, Trump has threatened the previous one US allies with sanctions “like never before”.
(SDA)
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