A previous version of this report included an incorrect time reference for gold’s last lengthy winning streak. Gold is on track for its longest consecutive session gains since the 11-day streak that ran from December 2017 to January 2018.
Getty Images Gold futures edge higher Tuesday, staying on track for a 10th straight gain and holding ground at their highest levels since April 2013, as investors weighed the prospects for further escalation intensions between the U.S. and Iran.
“Tensions in the Middle East are likely to stimulate risk aversion, consequently boosting investor’s appetite for gold,” wrote analysts at FXTM in a daily research note.
February gold GCG20, +0.17% on Comex added $2, or 0.1%, at $1,570.80 an ounce, after settling up 1.1% on Monday, marking the highest settlement for a most-active contract since April 9, 2013, according to FactSet data.
Gold is poised to stretch its streak of consecutive gains to 10 sessions, representing its longest period of gains since an 11-day streak that ran from December 2017 to January 2018, according to Dow Jones Market Data.
Gold and haven assets have received bids after the killing last week of a top Iranian military commander, Qassem Soleimani, which has reverberated through financial markets, momentarily upending appetite for assets considered risky and boosting traditional haven assets like gold.
March silver SIH20, +0.47% picked up 5.6 cents, or 0.3%, to trade at $18.235 an ounce, after a 0.2% gain on Monday.
Read: Why geopolitical events aren’t a good reason to buy gold
“I do not believe gold’s spike on Monday was a one-time event,” Michael Armbruster, managing partner at Altavest told MarketWatch.
“Gold has already been in rally mode for two weeks prior to the escalation of tensions between the U.S. and Iran,” he said. “The bottom line for gold, despite the stock market’s melt-up (or because of it!), is that gold’s rally suggests that investors are looking to diversify away from risk assets.”
“Bullish factors include: the U.S. federal budget deficit is out of control, the [Federal Reserve’s] rapid balance sheet expansion and central banks are buying gold,” he added. “We think a rally to the $1,650 to $1,750 range is likely in the months ahead.”
Still, precious metals were facing some headwinds from strength in the U.S. which can influence trade in dollar-pegged commodities.
The U.S. ICE Dollar Index DXY, +0.40%, a measure of the buck against a half-dozen currencies, was up 0.4% at 97.047, erasing its decline in the previous session.
Investors also said technical factors could determine the next phase for gold, which already has enjoyed a strong move, even before the Middle East tensions flared up.
“Although prices have strong bullish momentum, further upside will depend on how prices react around $1555,” said FXTM analysts.
“The precious metal should trend higher towards $1600 as long as $1555 proves to be reliable support. Alternatively, a breakdown below this level may open the door towards $1535,” the researchers wrote.
Among other metals, March copper fell by 0.2% to $2.784 a pound. April platinum shed 0.1% to $965.20 an ounce, while March palladium rose by 1% to $2,009 an ounce, poised for a fresh record.
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