July 10, 2008
Gold futures rose more than 1% Thursday, as reports of more missile tests by Iran boosted the safe-haven appeal of the precious metal.
Gold for August delivery surged $15.50, or 1.7%, to $944.10 an ounce on the New York Mercantile Exchange.
“More Iranian missile-rattling underpinned gold and oil prices overnight as the metal traded within a tight but firm range of from $925 to $933,” said Jon Nadler, senior analyst at Kitco Bullion Dealers.
Iran test-fired more missiles Thursday, after testing missiles the day before that could reach Israel, the BBC reported. Iran is the world’s fourth largest exporter of crude oil.
Gold is typically seen as a safe-haven investment and its appeal increases during times of heightened geopolitical tensions.
“Given the background of rising inflationary/recessionary fears, and with geopolitical tension surrounding Iran still running high, we would look for the metal to find continued scaled down support, and ultimately break higher once resistance around $953-$955 is cleared,” said Mark O’Byrne, director of Dublin-based Gold and Silver Investments, in a note.