Gold prices continued to soar today gaining as much as two percent to break through $1,600 as investors reacted to a possible breakout of war between the US and Iran.
Gold prices spiked globally to $1,610.90 per ounce (or around 31 grams), prices unseen since March 2013. Gold is considered a safe haven investment during times of crisis and uncertainty and retains true value compared to unbacked national currencies around the world.
The spike occurred after news that the Iranian government struck US military bases in western Iraq last night with dozens of missiles, according to the US Defense Department. The attack comes after US President Donald Trump ordered the assassination of a high level Iranian official in Iraq on Thursday.
Compounding matters, a Boeing 737 jet headed for Ukraine crashed after taking off in Iran killing 180 people at around 6 am Iranian time today. There has been no information that the crash is linked to the US-Iran conflict.
On Thursday, a US military drone attack assassinated Iranian military commander Qasem Soleiman in Baghdad. The killing reverberated throughout the region and thousands of mourners jammed Tehran’s streets this week to pay respects to their fallen hero.
Iran reacted by firing missiles at US military bases in Iraq Wednesday morning Baghdad time.
Ayatollah Ali Khamenei, the supreme leader of Iran, said on Wednesday that the US presence in the Middle East must come to an end.
“What matters is that the presence of America, which is a source of corruption in this region, should could come to an end,” said the Iranian leader on Iranian TV.
“This region does not accept the US presence,” he added.