Market Overview

Gold's Santa Claus Rally Followed By Surge On Iranian Tension

Gold's Santa Claus Rally Followed By Surge On Iranian Tension

Gold prices have continued to surge this week as tensions between the U.S. and Iran drive investors toward safe harbors. 
Gold prices increased $50 in the opening trading days of 2020 and then reached their highest levels since 2013 in the wake of Iranian missile attacks on military bases in Iraq.

The commodity was trading at $1,554.62 per ounce at the time of publication.

Bethel Loh, a macro strategist at ThinkMarkets, said in a note that it's a classic demonstration of risk-off, as markets took to gold with no hesitation, pushing the shiny metal well past third-quarter 2019 highs of $1,557.

Benchmark crude oil prices also rose following the U.S. airstrike that killed Qasem Soleimani, the leader of the Iranian Quds force.

“The gain of 1.52% sees the risk-off hedge ink new highs not seen since 2013. Fears that Iran will disrupt major oil infrastructure, not dissimilar to when drones attacked Saudi Arabia, also saw Crude futures gap at the open and sustain above key psychological level of US$70/bbl,” Loh said. 

A Santa Rally In Gold 

Gold initially traded higher throughout the Christmas holiday in a move known as a Santa Rally due to increased demand combined with thin liquidity in FX at the year's end, said Olivier Konzeoue, an FX sales trader at Saxo Markets. 

“The escalation of tensions in the Middle East has since sent gold to a seven year high, as markets seek refuge in a traditional safe haven in times of uncertainty. We expect gold to redeem some of its recent gains at the first signs of de-escalation.”  

The SPDR Gold Trust (NYSE: GLD) was trading down 1.08% and the VanEck Vectors Gold Miners ETF (NYSE: GDX) was trading down 4.37% at the time of publication. 

Related Links:

Oil Markets Surge In Wake Of Iran Killing; Eyeing The Scenarios Going Forward

Barrick Gold Will Acquire Tanzania-Based Acacia Mining For $428M

Photo from Pixabay

Latest Ratings for GLD

Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy
Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy

View More Analyst Ratings for GLD
View the Latest Analyst Ratings

Posted-In: GoldAnalyst Color News Commodities Markets Analyst Ratings Best of Benzinga


Related Articles (GDX + GLD)

View Comments and Join the Discussion!

Latest Ratings

HUYAGoldman SachsDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at