Iran-US conflict jumps oil and leaps gold


Iran-US conflict jumps oil and leaps gold

Iran’s claimed attack on two military bases sheltering American soldiers in Iraq on the night of January 7-8 further boosted gold and oil prices. The probability of an escalation and a lasting rise in commodity prices remains difficult to measure.

The price of a barrel of WTI (West Texas Intermediate), the American reference oil, jumped briefly to more than 65 dollars (+ 4.5%) at the announcement of the bombardment of two military bases used by American forces deployed in Iraq the night of January 7-8, before falling back to $ 63.

Edit at 6:40 pm : late in the day, after the announcement by the American Energy Information Agency (EIA) of an increase in American commercial oil stocks and soothing statements by Donald Trump, who spoke of economic sanctions but no military response against Iran, the oil prices had lost their gains overnight, to stabilize around 60 dollars for the WTI and 65 dollars for the Brent (international reference price). ]

The ounce of gold reached $ 1,600 when trade opened in Asia. For the precious metal, it is only a jump after an increase in the spot price in London of almost 20% in 2019. Gold remains a safe haven, alternative to currencies (it tends to rise when the dollar down), equity markets hit by the China-US trade dispute and weak growth, and bond markets made unattractive by low interest rates.