subscribe to our newsletter

Gold at the end of the geopolitical tension tunnel

Gold bars
Grace Ormsby
09 January 2020 — 1 minute read

The firing of missiles against US airbases has seen investors flocking to the safe haven of precious metal amid fears of further conflict.

In a blog post, the Perth Mint has noted the proximate cause of the latest rally to the price of gold as being “the sharp escalation in tensions between the United States and Iran, with the drone strike that killed Iranian military general Qassem Soleimaini”.

This in turn sparked a wave of safe haven buying, pushing the price of gold beyond $2,300 per troy ounce as Iran retaliated with a missile attack of its own against US troops.


While US President Donald Trump’s overnight decision not to escalate things further did cool things off, the price at 11AM, 9 January, is still sitting up at $2,266 per troy ounce.

The precious metals rally continues the strong upside move that the Perth Mint dates back to 2018’s fourth quarter, when a sharp decline in equity markets reignited demand for gold and other safe haven assets.

Gold’s value has skyrocketed more than 30 per cent in Australian dollar terms since.

The Perth Mint said it has seen investor appetite for precious metals grow firsthand, with the number of clients opening direct depository accounts more than doubling last year alone.

The jump in the price of gold has coincided with a jump in the price of a number of other key markets.

Bitcoin closed on 8 January at US$8,096.75 after jumping to a high of US$8,391.52 earlier in the day.

Crude oil peaked on 6 January at $63.27 before settling at $62.70 on 7 January.

Gold at the end of the geopolitical tension tunnel
gold bars smsf
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

Arm yourself with the critical information that you need to ensure you and your clients continue to thrive in today’s changing environment at the free-to-stream SMSF Adviser Technical Strategy Day. Live streamed directly to you in October over three days, this event is jam-packed with expert-led sessions to arm you for success by providing the latest updates on regulatory and legislative changes impacting SMSFs. Secure your free spot today, visit www.smsfstrategyday.com.au

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?


Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.