Gold prices soared to unprecedented levels after a helicopter crash tragically killed the President of Iran.
The price of gold spiked by 1.1% to $2,440.59 per ounce following the fatal crash that claimed the lives of Iranian President Ebrahim Raisi, Foreign Minister Hossein Amirabdollahian, and all other passengers in northwest Iran.
The incident heightened tensions in the Middle East, enhancing gold’s attractiveness as a safe haven during periods of unrest.
Despite this, the oil market appeared relatively unaffected by potential instability threats, with oil prices holding steady at $84 per barrel.
Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney, commented, “The surge in gold prices is driven by the uncertainty surrounding the events in Iran. There is a tendency to make assumptions with minimal information.”
Additionally, the rise in gold prices coincides with positive expectations that the US Federal Reserve will implement two interest rate cuts this year, following lower-than-anticipated inflation data.
This has bolstered support for gold, which is denominated in dollars.
