Gold prices fell with profits traders after their rise to approach their highest levels in two months due to exchanging extensive shelling between Israel Iran, which raised fears of a broader regional conflict.
Gold decreased in early instant transactions today 0.42%, recording $ 3418.17 an ounce, after reaching its highest level since April 22 earlier in the session.
US gold futures fell 0.59% to $ 3432.80.
Reuters quoted the chief market analyst in the Asian region The Pacific Ocean “It is the common political risk allowance that rises due to the conflict between Iran and Israel at this stage, which strengthened the demand for gold as a safe haven.”
“We now have a clear leap above the level of $ 3400, and the short -term upward trend is still.
Israel and Iran exchanged new attacks on Sunday, killing and wounding civilians and raising fears of the expansion of the conflict in the region while urging all the civilians at the other side to take the necessary precautions in preparation for more attacks.
He crossed the American President Donald Trump Yesterday, Sunday, his hope that Israel and Iran will be able to agree to a ceasefire, but he said that sometimes countries must fight the fighting to the end.
Gold is a safe haven during times of geopolitical and economic blurring.
Investors are awaiting a set of decisions this week Monetary From the central banks, with the direction of view to Federal Reserve Council (The US Central Bank), which will issue its decision on interest rates on Wednesday.
While it is widely expected to remain Central Bank Uply interest rates, the markets are awaiting any indicators on the possibility of reducing interest rates in the coming months.
As for other precious metals, its performance was as follows:
- Silver in instant transactions rose 0.38% to $ 36.44 an ounce.
- Platinum increased 1.24% to 1246.41 dollars.
- Palladium rose 1.54% to 1047.60 dollars.
Oil
Oil prices witnessed fluctuations after 7% on Friday, as the renewed military strikes by Israel resulted And Iran During the weekend to the exacerbation of fears of the expansion of the conflict and the disruption of oil exports from The Middle East Heavily.
Brent crude futures and West Texas intermediate crude rose by more than $ 4 a barrel before they retract their gains.
In the latest trading, Brent crude futures decreased by 21 cents, or 0.28% to $ 74.02 a barrel, while US West Texas Intermediate crude futures fell by 14 cents, or 0.18% to $ 72.77.
Both the two records settled 7% on Friday, after they jumped by more than 13% during the session to reach their highest levels since January.
“It is all about how to escalate the conflict over energy flows. So far, production and export capacity has been preserved, and Iran has not made any effort to block the flow of oil across Hormuz Strait. But no one can predict the path of the conflict. “
Iranian missiles hit Tel Aviv Israeli and city Haifa The coastal on Monday, which led to the destruction of homes and the excitement of the fears of world leaders at the Group of Seven meeting this week of the possibility of the expansion of the conflict.
On Sunday, the exchange of strikes between Israel and Iran resulted in civilian casualties, and the two armies urged both sides to take the necessary precautions in anticipation of more attacks.
Hormuz Strait
A major question is raised about whether the conflict will lead to disturbances in the Strait of Hormuz, through which about five total oil consumption in the world, or between 18 and 19 million barrels per day of oil, capacitors and fuel.
While markets monitor the possibility of unrest in Iranian oil production as a result of Israeli attacks on energy facilities, the increasing concerns about the siege of the Strait of Hormuz may raise prices sharply, according to the analyst at Fujitomi Securities, Tositaka Tazawa.
Iran, a member of the Organization of Petroleum Exporting Countries (OPEC), is currently about 3.3 million barrels per day, and it is released more than two million barrels per day of oil and fuel.
According to OPEC analysts and observers, the reserve energy of OPEC Plus oil producers, who are able to pump more oil to compensate for any interruption, is almost equivalent to Iran’s production.
“If Iranian crude oil exports are disrupted, the Chinese refineries (the only buyer of Iranian oil) will need to search for alternatives from other countries in the Middle East and Russian crude oil … this may also lead to increased shipping prices and oil carriers insurance … oil tankers … And damage to the margin of refineries, especially in Asia. “
Official data on Monday showed a decrease in production China From crude oil by 1.8% in May compared to the previous year, to reach its lowest level since August, as maintenance work in state -owned and independent refineries led to reducing operations.