Gold rallies as Iran retaliates
Early morning news that Iran has attacked a US base in Iraq has sent equities lower and the usual safe haven plays, gold and the Japanese yen higher. Oil is little changed.
US30USD Daily Chart
The US30 index has fallen the most in three months so far this morning after news of the Iran attack
The 55-day moving average, which has supported prices since October 10, has moved up to 27,887
The run-up to Friday’s non-farm payroll report begins with the release of the ADP employment change for December. It’s expected to jump to +160k from +67k in November. Fed’s Brainard is also scheduled to speak.
DE30EUR Daily Chart
The Germany30 index is lower this morning following reports of the Iran attack
The index looks set to close below the 55-day moving average at 13,125 for the first time since October 8
German factory orders probably rose 0.3% m/m in November, the latest survey suggests. That’s a sharp turnaround from October’s -0.4%.
XAU/USD Monthly Chart
Gold prices surged in early trading amid safe haven flows into the precious metal. Gold jumped the most since August 27 and extended the current bullish move to an 11th consecutive day
Gold reached the highest since March 2013 in the latest surge and breached the 61.8% Fibonacci retracement of the September 2011 to December 2015 drop at 1,594.08
Iran has reportedly launched a second wave attack on the base, according to local news agencies. CNN reports that US President Trump will address the nation soon.
