Tension in the Middle East sees oil and gold prices rise

 

The price of gold soared to its highest level in more than six years this week as tensions have risen in the Middle East following the killing of a prominent Iranian general by American forces on Friday.

As oil prices started to rise, investors began to move their investments to the safety of gold stocks and bonds. Additional pressure to currencies like the Mexican peso is expected to impact financial markets in 2020.

Crude oil prices also rose during the first week of the year, with the Brent oil price reaching US$70 per barrel and West Texas Intermediate hitting US$64, an increase of 5.2 percent 4.2 percent respectively.

Since the assassination of General Qassem Soleimani by US forces, President Donald Trump has threatened to target more military and cultural sites in Iran. The Iranian government promised a “severe retaliation” against the US in return for the killing.

Traders are still trying to predict how Iran’s response will affect the US stock market.