International spot gold was trading at $1,604.50 an ounce in early Asian trading on Wednesday. As geopolitical tensions in the Middle East continued to simmer, international spot gold rose above $1,600 for the first time in nearly seven years on the back of the latest Iranian retaliation, raising nearly $38 in the short term from a session low to a high of $1,611.20 an ounce.
Asia on Wednesday morning, the situation in the Middle East again. Iran’s revolutionary guard (IRGC) said it had fired 35 rockets at us bases in Iraq, as Iran began a “second wave” of attacks on US bases, Iran’s Tasmin news agency said.
Meanwhile, according to CCTV news, Iran’s Islamic revolutionary guard corps issued a new statement saying the attack was revenge for Suleiman and urging the United States to withdraw from Iraq as soon as possible, or Iran would launch more attacks.
Gold jumped nearly $38 from its session low on news of Iranian retaliation, rising above $1,600 for the first time in nearly seven years and peaking at $1,611.20 an ounce. Meanwhile, the dollar also fell 0.6 percent against the yen on the day, hitting its lowest level since October 10, 2019, of 107.63.
Earlier, foreign media reported that Iran’s Islamic revolutionary guard corps confirmed that it had fired dozens of missiles at the US Assad airbase in Iraq.
According to CCTV news, the Islamic revolutionary guard corps confirmed that it had fired dozens of missiles at the U.S. Assad airbase in Iraq, according to Iranian media.
Iran’s Islamic revolutionary guard corps (large) has confirmed that it has fired dozens of missiles at the US Assad airbase in Iraq, Press TV reported.
The Assad airbase in Iraq’s second-largest and is located near the town of Baghdad, about 110 kilometers west of Ramadi, the capital of Anbar province.
Assad airbase is by far the largest U.S. military base in Iraq and home to the multinational force of the international coalition against the extremist group Islamic State.
Iran said it had fired missiles at a US military base, the New York times said.
The US airbase in Iraq was hit by a rocket Thursday morning, AFP reported. The base is in western Iraq and is home to U.S. and coalition forces.
The French news agency said the attack was a “response” by pro-Iranian forces in Iraq to the killing of general Suleiman by us forces.
The White House has released a statement saying it is aware of reports of an attack on a US military base in Iraq and is closely monitoring the situation.
Meanwhile, the Pentagon said in a statement that Iran had fired more than a dozen ballistic missiles at the U.S. and allied forces in Iraq. The United States has begun a preliminary assessment of the damage from the attack, which hit two American targets in Iraq.
Earlier in the day, CCTV news reported that a rocket had hit a US airbase in Iraq. Earlier today, missiles were fired from various locations in Iraq, according to a senior us military source in Iraq, in what was described as a series of Iranian attacks on US forces.
White House officials also said they confirmed rocket attacks at a number of sites, including an airbase in Assad, Iraq; US President Donald Trump has been briefed on the attack and is monitoring the situation.
The Trump administration will brief the leaders of the congressional intelligence committee on Iran Tuesday afternoon, followed by the full house of representatives on Wednesday, Senate aides said.
The US Senate majority leader Mitch McConnell has said republican senators are ready to move forward with the impeachment trial of Donald trump without democratic support.
President Trump says he wants to follow the law when it comes to targeting cultural sites. The United States is prepared to take any possible retaliation against Iran and will take retaliatory action.
The US secretary of state Mike Pompeo has expressed confidence that if Iran makes another bad choice, trump will respond decisively and sternly as he said last week.
The rest of the session will focus on the latest developments in the U.S.
Joni Teves, an analyst at UBS, said gold continued to rise as international tensions prompted investors to buy precious metals to hedge their risks and physical demand for gold increased ahead of the lunar New Year holiday. A further boost came from a fall in real Treasury yields. But Mr. Teves warned that the recent rally had also been exacerbated by thin trading and that gold could soon fall back if hostilities between the US and Iran ease.
Jim Cramer, a prominent CNBC financial anchor, warned that the investment community appears to be underestimating the potential consequences of the growing tensions between the United States and Iran.
“When I see people buying gold endlessly, for the first time I think people are just saying, ‘I’m really scared,'” Cramer said. ‘”
“It’s not just treasuries,” Cramer added. The buying of gold is endless: it repeats itself. Gold looks like it wants to go up to $1,700 to $1,800. This is very negative for the stock market.”
Goldman kept its three -, six – and 12-month gold price forecasts at $1,200 an ounce unchanged but said it sees upside potential if geopolitical tensions worsen. At the same time, there is a recognition that rising geopolitical tensions could depress economic activity and weaken demand for base metals.
Spot gold was at $1,604.50 an ounce at 08:50 GMT.