AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

1/3/2020: Gold surges on ISM, Iran attack

Source: Bill Musgrave, American Gold Exchange

Austin — Gold surged 1.6% to close at a four-month high above $1,552 after weak US data and a major escalation in Middle East tensions drove investors toward safe havens. The metal rose 2.3% this week for its second straight weekly win.

The US killed a top Iranian general, Qassam Soleimani, in a targeted airstrike on a Bagdad airport, alleging that he was planning to kill Americans. Commander of Iran's elite Quds Force, Soleimani was the primary architect of Iran's spreading influence in the region. A senior Iraqi commander of Iran-backed militias was also killed.

The airstrike prompted immediate speculation that military confrontations between the US and Iran will intensify, further destabilizing the volatile region. Iran's supreme leader, Ayatollah Ali Khomeini, has vowed a "hard revenge." The Pentagon is deploying 3,500 additional troops to the Middle East.

Oil spiked 3% after the attack on concerns that the Straits of Hormuz, conduit for a third of the world's seaborn oil trade, will be closed by Iranian forces if war breaks out. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Gold was further supported by the deepening recession in US manufacturing. The ISM index slid in December to its weakest level in 10 years, with new orders dropping to an 11-year low and factory employment falling for the fifth straight month.

US Treasurys rallied alongside gold on flights to safety while the Dow fell 0.8% and the Nasdaq 0.7%.

The other precious metals were also higher for the day and week. Silver picked up 0.6% for a weekly rise of 1.1%. Platinum added 0.5% today and 4.3% this week. Palladium rose 1.4% on the day and 3.9% on the week.

At the Comex close: February gold surged $24.30 to $1,552.40; March silver added 11 cents, to $18.15; April platinum picked up $5.30 to $990.30; and March palladium jumped $27.70 to $1,955.7 an ounce.