As the geopolitical tension eases between the U.S. and Iran, geopolitics remained high on the radar over the weekend, after Iran admitted it downed a Ukrainian jet after mistaking it for a cruise missile.
It was a wild week for the precious yellow metal after news of the death of top Iraqi military leader General Soleimani in a U.S. airstrike sent shockwaves across the global markets.
After surging to a near seven-year high, the yellow precious metal prices plummeted further on Friday as tensions between the U.S. and Iran ebbed.
On Wednesday, prices briefly broke above the critical $1,600 level after Iran’s retaliatory attacks on military bases housing U.S. troops in Iraq.
Due to U.S. President Trump responding with sanctions has eased fears to a wider conflict in the Middle East which prompted the initial sell-off in safe-haven assets like gold, and Yen weakness.
Meanwhile, Iran’s powerful Revolutionary Guard issued new threats to Washington on Thursday, with one senior commander warning of “harsher revenge soon” and another saying this week’s missile strikes were only the start of a series of attacks across the region.
From the given break of the $1,550 support now gives a neutral outlook in the short-term until prices either correct above $1,565 (which would reopen the $1,600-15 target), or the current decline continues to the short-term demand area viewed from $1,522-26.