“Relief can be seen across markets following the knee-jerk reaction toward the eruption of geopolitical tensions,” Pan Jingyi, market strategist at IG Asia in Singapore, said in a note. Still, while bullion has given up some lustre, it’s keeping its position as a favoured hedge in the face of elevated risks, she said.
(Jan 7): Gold fell from the highest level in more than six years as some appetite for risk crept back into financial markets that had been rattled by the sharp escalation of tensions between the US and Iran.
Prices of the traditional haven – which rallied 2.4% over the past two days to approach US$1,600 an ounce – eased on Tuesday as Asian equities rebounded. The shift came even as Washington committed more troops to the Mideast amid expectations that Tehran will retaliate for the US killing of a senior general.
