(Bloomberg) — Gold prices stabilized after paring earlier gains amid signs that both sides in the U.S.-Iran hostilities wanted to pull back from the brink of conflict. Palladium rose to a fresh record above $2,100 an ounce.
Iran apparently intended to avoid U.S. casualties when it launched more than a dozen missiles at U.S.-Iraqi airbases in retaliation for an American airstrike that killed a top Iranian general, according to U.S. officials with knowledge of the matter. Earlier, gold jumped above $1,600 for the first time in almost seven years after the attack boosted demand for the metal as a haven asset.
U.S. President Donald Trump tweeted that “All is well!” He is expected to make a statement later Wednesday.
“Gold essentially responded to risk-off environments,” Bart Melek, head of commodity strategy at TD Securities, said by phone on Wednesday. “No American lives were lost, and the president was quite clear that if American lives were lost we would retaliate.”
While bullion’s blistering start to the year has been driven by the rising hostilities in the Middle East, the metal was already rallying last year as the Federal Reserve eased policy, governments added gold to reserves, and holdings in exchange-traded funds rose.
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