---
title: "Gold Holds Near Six-Year High With Focus on Tehran’s Next Move"
description: "Gold held near the highest level in more than six years as investors tracked developments in the Middle East, with the U.S. committing more troops to the region amid its standoff with Iran, which has pledged to hit back against Washington for the killing of a senior Iranian general."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2020-01-07-gold-holds-near-six-year-high-with-focus-on-tehrans-next-move/"
published: "2020-01-07T05:11:06"
lang: "en-ZA"
word_count: 243
---

# Gold Holds Near Six-Year High With Focus on Tehran’s Next Move

> Gold held near the highest level in more than six years as investors tracked developments in the Middle East, with the U.S. committing more troops to the region amid its standoff with Iran, which has pledged to hit back against Washington for the killing of a senior Iranian general.

By Bloomberg · Published 7 January 2020, 07:11 SAST

## Content

Gold prices rallied 2.4% over the past two days, approaching $1,600 an ounce, driven by an upswing in haven demand, with Goldman Sachs Group Inc. saying gold was a better hedge in the crisis than oil. Still, Asian equities rebounded on Tuesday after the S&P 500 Index rose for the third time in four sessions.

Bullion’s early-year surge builds on 2019’s 18% climb amid the specter of a direct confrontation between the U.S. and Iran. A three-ship U.S. amphibious group has been ordered to the [Persian Gulf region](https://www.bloomberg.com/news/articles/2020-01-06/esper-says-u-s-hasn-t-decided-whether-to-withdraw-from-iraq), following the deployment of about 3,500 soldiers from the Army’s 82nd Airborne to Kuwait last week.

There are mixed signals on where prices may now go. Implied volatility on gold options -- or the likelihood prices will continue their bullish move -- jumped to the highest since mid-October, according to a measure calculated by the Chicago Board Options Exchange. However, the 14-day relative strength index remained above the level of 70 that typically suggests securities are overbought.

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Spot gold was 0.1% lower at $1,564.45 an ounce at 9:24 a.m. in Singapore after rallying to $1,588.13 on Monday, the highest level since 2013. Silver fell, while palladium was at steady $2,031.08 an ounce after reaching a record $2,032.98 on the week’s opening day.