Gold, silver rally on reports Iran poised to attack Israel
NEW YORK (October 1) Gold and silver prices are solidly higher in midday U.S. trading Tuesday. Safe-haven demand is featured as reports have surfaced the U.S. has intelligence that Iran is preparing a ballistic missile attack on Israel. December gold was last up $23.20 at $2,683.10 and December silver was up $0.347 at $31.80.
The marketplace has been keeping a close eye on developments in the Middle East. Besides the latest news on a pending missile strike by Iran against Israel, the Israeli conflict with Hezbollah sees Israel putting troops on the ground in Lebanon. Thus far, Iran has been staying out of direct conflict with Israel. The marketplace is very concerned the Middle East is on the verge of all-out war between Iran and Israel that could envelope the U.S. and maybe even other major military powers.
It’s very likely gold prices will hit new record highs if Iran strikes Israel. Silver prices would also likely hit new for-the-move highs.
The U.S. stock market has sold off on the Iran-Israel news. The keener risk aversion in the marketplace sees U.S. Treasury yields dropping and the U.S. dollar index gaining. Crude oil prices have rallied on the Middle East conflict escalating.
In other news, Fed Chairman Jerome Powell made some markets-sensitive comments in an interview Monday afternoon, hinting that the Fed will make two 0.25% interest rate cuts yet this year. That somewhat disappointed the monetary policy doves, who want to see larger rate cuts. The U.S. stock market briefly sold off before rebounding, while gold prices lost some ground Monday afternoon.
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