The military unrest in the conflict between the United States and Iran has reached a new escalation level and the gold price in euros has reached a new all-time high.
Euro gold price at all-time high
The gold price continues to rise sharply. This morning at 9:30 a.m., the troy ounce of gold on the spot market cost $ 1,586 (+0.8%). That corresponded to 1,424 euros. This means that the gold price calculated in euros has reached a new all-time high. As early as Monday, the euro gold price on the basis of the US futures had climbed just above the over 1,420 euro mark during the day. The silver price today reached $ 18.44 (+0.2%) and € 16.54 (+0.3%), the highest level since October 2019.
Middle East conflict escalates
The price rise in precious metals is supported by the continuing geopolitical tensions in the Middle East. As the first retaliatory measure for the US’s killing of top Iranian general Ghassem Soleimani, the Iranian military fired at a base in Iraq that was used by the US armed forces during the night. The price of gold had already risen to 1,443 euros during the night. Whereas the stock markets showed weakness in the wake of the renewed economic uncertainties.
The DAX fell a good 0.7 percent on Wednesday morning to 13,136 points. Yesterday, mixed economic data came from the USA. Orders received in November fell 0.7 percent compared to the previous month. The ISM purchasing manager index (non-manufacturing) was in the range of analyst expectations with 55.2 points. In November, US exports reached their highest level since August 2019. The job report of the private employment agency ADP is published in the USA this afternoon. The official U.S. government job market report (Non-farm Payrolls) will be released on Friday.