Gold Price Inches Closer to $1,600 After Reaching Its Highest Level Since 2013

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    Gold and Bitcoin remain on a tear as geopolitical tensions continue to worsen

Gold Price Inches Closer to $1,600 After Reaching Its Highest Level Since 2013
Cover image via 123rf.com

The price of gold has recently surged to its highest level in nearly seven years due to the growing demand for safe-haven assets amidst geopolitical headwinds. 

One ounce of the precious metal is currently trading at $1,573 after reaching an intraday high of $1,590. This was a typical reaction of safe-haven assets. It is worth noting that gold is up by almost eight percent since November 2019, and touching $1,600 seems like a sealed deal at this point. 

Gold Price
image by @graddhybpc

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As reported by U.Today, gold and Bitcoin started to rally after Iran's Gen. Qasem Soleimani was assassinated by a US strike that was authorized by President Donald Trump himself. This instantly exacerbated US-Iran tensions that continued to intensify with Iranian officials promising "severe retaliation."   

β€œWe found that spikes in geopolitical tensions lead to higher gold prices when they are severe enough to cause currency debasement,” said Jeff Currie, head of commodities research at Goldman Sachs.

Gold bug Peter Schiff recently took to Twitter to reassure investors that the current rally is more than "safe-haven buying." 

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Meanwhile, the S&P 500, which is considered to be a risk-on asset, fails to budge after an impressive streak of gains. The widely tracked stock market index has dropped to 3,231. Schiff believes that US equities are driven by "reckless" Federal Reserve policies. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry β€” from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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