An earlier version of this report incorrectly stated that prices for futures were trading in record territory. The most-active contract for gold is trading at its highest levels since 2013. The error has been corrected.
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Geopolitical tensions helped nudge investors into gold on Tuesday, with the precious metal poised to mark its highest finish in over six years.
Gold has seen an “extraordinary march higher as global economic worries, political worries and U.S. politics underpin many bids from buyers, in many countries, as opportunity costs for buying gold have also lowered buyers’ resistance,” said George Gero, managing director at RBC Wealth Management.
August gold GCQ19, +1.37% rose $19.70, or 1.4%, to $1,437.90 an ounce, which could put the precious metal on track for the highest settlement for a most-active contract since May 19, 2013, according to FactSet. Gold rose 1.3% to settle at $1,418.20 on Tuesday, for the strongest settlement for a most-active close since August 28, 2013.
Expectations for lower interest rates among global central banks and geopolitical concerns are making gold a preferred investment these days. The Japanese yen, another perceived haven investment, rose 0.4% against the dollar USDJPY, -0.39% The yield on the 10-year note TMUBMUSD10Y, -1.53% fell .,6 basis points to 1.984%.
That follows declines among equities in Europe and Asia, and U.S. benchmark stock indexes traded lower in Tuesday dealings amid rising tensions between the U.S. and Iran. Investors also awaited a planned meeting between President Donald Trump and Chinese leader Xi Jinping to discuss trade issues at this week’s Group of 20 gathering in Japan.
Iran’s U.N. Ambassador Majid Takht Ravanchi warned of a “very dangerous” situation in the Persian Gulf, ruling out talks with the U.S. after President Donald Trump on Monday signed an executive order imposing financial sanctions on Iranian leaders. The moves comes days after calling a halt to airstrikes on the country, which shot down a U.S. military drone.
“Iran has said the door is shut for any diplomatic path and this means the uncertainty will continue to rise. This is likely to keep pushing the gold price higher and it can easily cross the level of $1,500,” said Naeem Aslam, chief market analyst at TF Global Markets, in a note to clients.
July silver SIN19, +0.41% rose 6.3 cents, or 0.4%, to $15.44 an ounce after gaining 3.3% last week.
July copper HGN19, +1.40% added 1.4% to $2.742 a pound. July platinum PLN19, +0.84% rose 0.7% to $817.10 an ounce, while September palladium PAU19, +0.41% climbed 0.2% to $1,532 an ounce..
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