Spot gold fell sharply on Wednesday and fell below $1590 an ounce after briefly breaching the $1610 mark. Iran’s latest comments cooled risk aversion.
The latest is a letter from Iran to the UN security council saying it does not seek war.
Iran’s foreign minister, Mohammad Javad Zarif, said self-defense was over and Iran was not seeking war. “We do not seek an escalation of the war, but will defend ourselves against any aggression,” Zarif twitted.
Ali Arouzi, NBC’s Tehran bureau chief, said, “Iran says it will stop attacks if the United States does not retaliate against these latest attacks.” But Iran has also said its response would be overwhelming and broad if the United States attacked.
After the news, risk aversion eased slightly and gold fell sharply in the short term to below $1,490 an ounce. Spot gold hit as high as $1,611.20 an ounce earlier on news of the attack on a U.S. military base.
WTI crude fell back to around 2 percent, trading at $64.07 a barrel after surging more than 4 percent to as high as $65.65
U.S. stock index futures pared losses, with s&p 500 futures down 0.4 percent.
Analysts noted that some investors took profits after a previous surge in gold prices, which also pushed prices lower in the short term.
With investors still focused on the latest developments in the Middle East, gold is still poised for a big rally in the event of fresh bad news.
On the morning of January 8, local time, the US military in Iraq “Assad airbase” came under missile attack. The base is in western Iraq and is home to U.S. and coalition forces. The Islamic revolutionary guard corps has confirmed it has fired dozens of missiles at a US airbase in Iraq.
Iran’s Islamic revolutionary guard corps (IRC) said the attack on the U.S. base was revenge for the death in a U.S. airstrike of its Quds force commander, Omar Suleiman. Iran’s Islamic revolutionary guard corps has urged the United States to withdraw from Iraq as soon as possible, or face more attacks from Iran. America’s Allies, such as Kuwait, Bahrain, Saudi Arabia, Jordan, and Israel, would also be in Iran’s crosshair.
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 confirmed that US President Donald Trump has been briefed on the attack on the Assad airbase in Iraq and is monitoring the situation closely while urgently consulting with members of his national security team.
According to Fox News, the Pentagon told several media outlets that no us troops had been killed in the missile strike.
Qasim Suleiman, commander of Iran’s Quds force, and ABU Mehdi Mohandas, deputy commander of Iraq’s popular mobilization militia, were killed in a U.S. airstrike on Baghdad’s international airport on Jan. 3. The Pentagon says President trump has directed US airstrikes on two Iran-related targets in the Iraqi capital Baghdad.