World gold prices skyrocket after Iran attacks Israel
Gold prices rose $30 an ounce as demand for safe havens surged after Iran launched a ballistic missile at Israel on October 1.
At the end of the trading session on October 1, the world spot gold price increased by 30 USD to 2,664 USD per ounce. This development ended 2 consecutive sessions of sharp decline of the precious metal.
Gold prices increased sharply in the session of October 1. Chart: Kitco
In the domestic market, Saigon Jewelry Company (SJC) currently lists the price of gold bars at 82 - 84 million VND per tael, equivalent to the opening price yesterday. Each tael of gold ring at SJC is currently priced at 81.4 - 82.9 million.
Iran launched a missile attack on Israel on October 1 in retaliation for the killing of Hezbollah and Hamas leaders. Israel said the missiles were ballistic missiles. The Israeli Defense Ministry estimated that Iran launched more than 180 ballistic missiles, while the Pentagon said Tehran fired nearly 200.
"If there are serious Israeli casualties, we could see fighting across the Middle East. That's what investors are worried about, which is driving demand for safe haven gold," said Jim Wyckoff, an analyst at Kitco Metals. Gold is a popular tool in times of economic and political uncertainty.
Tai Wong, an independent precious metals investor in New York, also attributed yesterday's market action to the need for safe-haven assets. Another reason for the rise in gold prices was the fall in the yield on 10-year US government bonds, making non-interest-bearing instruments like gold more attractive.
This week, financial markets will closely monitor US employment data and statements from US Federal Reserve officials for further clues on the agency's policy stance. On September 30, world gold prices recorded their worst day in four weeks, falling more than $20 after Fed Chairman Jerome Powell said interest rates would likely be cut by only 25 basis points at the next meeting.
However, Ricardo Evangelista, an analyst at ActivTrades, said that the drivers for gold's recent price increase are still there, including expectations of a US interest rate cut and demand for safe havens due to political uncertainty.
The prices of the world's two major crude oils both rose more than 2% yesterday due to tensions in the Middle East. At the close of trading on October 1, Brent crude rose 2.6% to $73.5 a barrel. US WTI crude added 2.4% to $69.8. This morning, prices continued to rise, with current increases of 1.3% and 1.5%, respectively.