Trump says he’s willing to negotiate with Iran. Falling gold, soon back above 1600?

International spot gold was trading at $1,557.90 an ounce in early Asian trading on Thursday. Gold has retreated from $1,600 for the first time in nearly seven years to a high of $1,611.20 an ounce and is now back in the $1,557 area after a speech by US President Donald Trump temporarily cooled risk aversion amid tensions between the US and Iran. The dollar index, meanwhile, rose as high as 97.36 and briefly hit 109.24 against the yen. Separately, U.S. stocks reversed losses and rose, with crude oil closing down more than 4 percent.

In a rare softening of tone, U.S. President Donald Trump on Wednesday dropped his recent harsh rhetoric against Iran, saying it appeared to be softening its stance as the two sides sought to defuse a dangerous escalation over the Suleiman crisis. The plunge in risk aversion, coupled with a continued rebound in the dollar following Wednesday’s positive U.S. non-farm payrolls data for December, sent gold sharply lower from its session high, which saw it move $60 on the day.

Trump’s speech temporarily cooled the safe-haven gold price fell

With the US on the brink of war with Iran, US President Donald Trump addressed the American people on Wednesday. In his speech, Mr. Trump said that no us military personnel had been injured in the January 8 Iranian missile attack on an Iraqi base and that the base itself had suffered “minimal” damage. Mr. Trump said the US would immediately impose additional punitive economic sanctions on the Iranian regime, but was open to talks with Iran. Spot gold accelerated its decline, currently trading in the $1,557 / oz area, as risk aversion cooled further in response to trump’s remarks.

US President Donald Trump says Iran appears to be easing the situation less than a day after it attacked a US military base in Iraq.

Mr. Trump said the US would continue to consider its options and would “immediately impose additional punitive economic sanctions on the Iranian regime”. He said tough sanctions would remain in place until Iran changed course. In recent months alone, Iran has seized ships in international waters, launched unprovoked attacks on Saudi Arabia and shot down two American drones.

Speaking in the grand foyer of the White House, Mr. Trump said no Americans had been injured in the attacks. In his speech, Mr. Trump said that no us military personnel had been injured in the January 8 Iranian missile attack on an Iraqi base and that the base itself had suffered “minimal” damage. This, he said, was due to preventive measures to “decentralize forces” and improve early warning systems.

Mr. Trump also warned that “Iran will not be allowed to have a nuclear weapon as long as I am President of the United States”.

But Mr. Trump also said the US was open to talks with Iran. “We must work together to reach a deal with Iran that will make the world a safer and more peaceful place,” Trump said. He urged other world powers to break away from the Obama-era Iran nuclear deal and reach a new one.

Trump said it was time for “Britain, Germany, France, Russia, and China” to leave the Iran nuclear deal; Today he wants NATO to be more involved in the Middle East; The days of tolerating Iran’s behavior for too long are over.

Trump also noted that our energy security has improved so much that we don’t need crude oil from the Middle East. We have many more advanced weapons that we do not expect to ever use; The United States has killed tens of thousands of ISIS terrorists. ISIS is an enemy of Iran.

Mr. Trump also called on Iran’s leaders, saying we want you to have a future, a great future, prosperity at home and peace with the rest of the world. Mr. Trump also said the US was ready to embrace peace with all nations seeking it.

Trump spoke alongside vice President mike pence, secretary of state Mike Pompeo, secretary of defense David esper and senior U.S. military officials. He spoke for about ten minutes without taking any questions.

Iran fired a barrage of ballistic missiles at two military bases in Iraq Wednesday morning. At least a dozen missiles were fired, but it was unclear whether the attacks caused American casualties.

Meanwhile, the US military pulled out of two bases in the northeastern Syrian province of hassek and prepared to leave for Iraq, Syrian media reported Thursday. The report said the withdrawal began hours after Iran’s Islamic revolutionary guard corps carried out a missile strike on a military base in Iraq.

Tan huimin, the chief investment strategist at BNP Paribas wealth management, told a news conference that tensions in the Middle East were rising from time to time and he believed the incident would have only a temporary impact on markets and would not impede the pace of global economic growth.

“Even if the situation in the Middle East worsens, central Banks, including the fed, can offset the negative impact on the economy by easing monetary policy. On the other hand, this is an election year in the United States, and I believe the United States does not want the situation in the Middle East to get out of control and affect the election.”

James Rosenberg, a financial adviser at Baillieu Holst, thinks there will be a small negative reaction at first – mainly because the market is already very safe because of the high price/earnings ratio. The bigger question is how the uUS will respond and whether tensions will escalate. It is too early to tell, so my judgment is to reduce the risk by selling a little early.

A missile strike in Baghdad’s green zone could prevent further market volatility

Earlier Thursday, Iraqi television station al-Sumeria reported that explosions were heard in Baghdad’s green zone. Several missiles are said to have hit the green zone in Baghdad.

Three katyusha rockets landed in Baghdad’s green zone and set off a fire, according to Iraqi police.

Iraqi officials said two katyusha rockets landed in Baghdad’s green zone, causing no casualties.

The latest reports say the attack appears to have been carried out by Iranian-backed militias. A total of three rockets were fired, targeting the US embassy. No casualties have been reported.

The green zone in Baghdad is home to the embassies of Australia, Britain and, of course, the United States. There are also government agencies and other diplomatic agencies.

Sirens were reported to have sounded, apparently from the US embassy. The attack was said to have come from two katyusha rockets.

The rising tensions between the United States and Iran have been accompanied by geopolitical contingencies. In addition to Wednesday’s crash of a Ukrainian airliner in Iran, the missile attack on the green zone in Baghdad is also a “danger sign” that markets need to be on alert for any unexpected news that may come up. Gold is also expected to move up and down as risk aversion swings.

The US senate minority leader Charles Schumer says he’s asked the administration of President Donald Trump to brief him again on Iran. Secretary of state Mike Pompeo and defense secretary mike esper were asked to brief again on Iran within a week.

Meanwhile, the speaker of the US house of representatives Nancy Pelosi has said the house of representatives will vote on a resolution restricting President trump’s power to take military action against Iran on Thursday.

Edward Moya, senior market analyst at OANDA, said, “we don’t expect to see war, so you might see some weakness in gold, but the rest of the catalysts are still there.” We could see gold go as low as $1,550 / oz next, but eventually, we could see gold continue to move higher, to $1,640 / oz in the short term.

The rest of the session continued to keep a close eye on developments in the Middle East, while focusing on U.S. jobless claims, the eurozone unemployment rate, comments by the bank of England governor mark carney and fed officials Clarida, kashkari, and Williams

At 09:07 Beijing time, spot gold was trading at $1557.90 an ounce.

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