U.S. markets open in 1 hour 9 minutes

Gold's Santa Claus Rally Followed By Surge On Iranian Tension

Tanzeel Akhtar

Gold prices have continued to surge this week as tensions between the U.S. and Iran drive investors toward safe harbors. 
Gold prices increased $50 in the opening trading days of 2020 and then reached their highest levels since 2013 in the wake of Iranian missile attacks on military bases in Iraq.

The commodity was trading at $1,554.62 per ounce at the time of publication.

Bethel Loh, a macro strategist at ThinkMarkets, said in a note that it's a classic demonstration of risk-off, as markets took to gold with no hesitation, pushing the shiny metal well past third-quarter 2019 highs of $1,557.

Benchmark crude oil prices also rose following the U.S. airstrike that killed Qasem Soleimani, the leader of the Iranian Quds force.

“The gain of 1.52% sees the risk-off hedge ink new highs not seen since 2013. Fears that Iran will disrupt major oil infrastructure, not dissimilar to when drones attacked Saudi Arabia, also saw Crude futures gap at the open and sustain above key psychological level of US$70/bbl,” Loh said. 

A Santa Rally In Gold 

Gold initially traded higher throughout the Christmas holiday in a move known as a Santa Rally due to increased demand combined with thin liquidity in FX at the year's end, said Olivier Konzeoue, an FX sales trader at Saxo Markets. 

“The escalation of tensions in the Middle East has since sent gold to a seven year high, as markets seek refuge in a traditional safe haven in times of uncertainty. We expect gold to redeem some of its recent gains at the first signs of de-escalation.”  

The SPDR Gold Trust (NYSE: GLD) was trading down 1.08% and the VanEck Vectors Gold Miners ETF (NYSE: GDX) was trading down 4.37% at the time of publication. 

Related Links:

Oil Markets Surge In Wake Of Iran Killing; Eyeing The Scenarios Going Forward

Barrick Gold Will Acquire Tanzania-Based Acacia Mining For 8M

Photo from Pixabay

Latest Ratings for GLD

Date Firm Action From To
Apr 2013 Initiates Coverage on Strong Buy
Apr 2013 Initiates Coverage on Strong Buy

View More Analyst Ratings for GLD
View the Latest Analyst Ratings

0

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • U.S. dairy farmers dump milk as pandemic upends food markets
    Business
    Reuters

    U.S. dairy farmers dump milk as pandemic upends food markets

    Despite strong demand for basic foods like dairy products amid the coronavirus pandemic, the milk supply chain has seen a host of disruptions that are preventing dairy farmers from getting their products to market. Mass closures of restaurants and schools have forced a sudden shift from those wholesale food-service markets to retail grocery stores, creating logistical and packaging nightmares for plants processing milk, butter and cheese. Trucking companies that haul dairy products are scrambling to get enough drivers as some who fear the virus have stopped working.

  • Trump says 3M 'will have a big price to pay' over face masks
    Business
    Reuters

    Trump says 3M 'will have a big price to pay' over face masks

    President Donald Trump slammed 3M Co in a tweet late on Thursday after earlier announcing he was invoking the Defense Production Act to get the company to produce face masks. At a White House briefing on the coronavirus pandemic earlier on Thursday, Trump announced he had signed a Defense Production Act order for 3M to produce face masks.

  • Trump’s Push for Huge Deal to Cut Oil Supply Draws Disbelief
    Business
    Bloomberg

    Trump’s Push for Huge Deal to Cut Oil Supply Draws Disbelief

    After the president's social-media intervention on Thursday, oil traders are frantically assessing whether Saudi Arabia, Russia and possibly even the U.S. -- the world's three biggest producers -- are poised to strike a once-unthinkable grand bargain to cut daily supplies in unison by 10 million to 15 million barrels. It's unclear whether it's feasible -- or even legal -- for such a coalition to come together. Or indeed whether it would be enough to tame the tsunami of unwanted crude now bearing down on world markets, which could be two to three times bigger than the cut touted by Trump.

  • At What Point Is Delta Stock a Screaming Buy?
    Business
    InvestorPlace

    At What Point Is Delta Stock a Screaming Buy?

    Airlines vs. Coronavirus It's not a secret to investors that the coronavirus has depressed global and domestic air travel. With President Donald Trump recently extending the social distancing guidelines until April 30 and with the U.S. now having the most COVID-19 cases, it's unlikely consumers will be flocking to the airport anytime soon. Airlines have become easy for the public to attack.

  • ‘Quiet’ Warren Buffett has three ways to win in this market
    Business
    MarketWatch

    ‘Quiet’ Warren Buffett has three ways to win in this market

    At times like this it must be a relief to have some of your retirement portfolio managed by Warren Buffett. Granted, Buffett and Berkshire Hathaway Vice Chairman Charlie Munger aren't the spring chickens they were during the dot-com crash or the global financial crisis, when they were spry youngsters in their 70s and early 80s. The company press office says Buffett is not planning to speak in public before May.

  • Equities Take a Stroll Through Wonderland, Awaiting “Herd Immunity.”
    World
    FX Empire

    Equities Take a Stroll Through Wonderland, Awaiting “Herd Immunity.”

    US initial claims rise more than 3mn for another week, a spike in continuing claims suggests the labor market has come to a full stop Initial claims jobless claims for the week ended March 28 were 6.6mn, up 3.3mn from the previous week. Since markets have seemingly become immune to the rise in COVID 19 case counts, I'm not sure where the more important story lies today. Is oil the talk of the town, or is it the thought-provoking ( non) price action across a breadth of US asset classes in the aftermath of the ghastly jobless claims number.

  • Oil extends climb on hopes OPEC+ achieve output cuts
    Business
    MarketWatch

    Oil extends climb on hopes OPEC+ achieve output cuts

    Oil prices climbed again on Friday, boosted by hopes the Organization of the Petroleum Exporting Countries and its allies will deliver a production cut and end a devastating price war between Saudi Arabia and Russia. On Thursday the contract surged 24.7% to settle at $25.32 a barrel after tapping a high of $27.39 on the New York Mercantile Exchange. The WTI and Brent crude benchmarks marked their largest one-day percentage gains on record Thursday, based on the front months, according to Dow Jones Market Data.

  • Business
    MarketWatch

    Raytheon Technologies' stock, formerly United Technologies, starts trading in the Dow Friday,

    The Dow Jones Industrial Average (djia) will look a little different Friday, as the company formerly known as United Technologies no longer exists, with the industrial company's name changing to Raytheon Technologies Corp. (rtx) and the ticker symbol changing to "RTX." The change comes after United Technologies completed the spinoff of Carrier Global Corp. (carr) and Otis Worldwide Corp. (otis) The S&P 500 (spx)will also look a little different, as Carrier, with a new ticker symbol of "CARR," and Otis, with a ticker of "OTIS," have been added as of Friday, while Raytheon and Macy's Inc. (m) have been deleted. Shares of Carrier, Otis and Raytheon Technologies have not yet traded in the premarket.

  • Luckin Coffee COO under investigation after fabricating sales, shares plummet 80%
    Business
    Yahoo Finance Video

    Luckin Coffee COO under investigation after fabricating sales, shares plummet 80%

    Shares plummet 80% for China's coffee giant Luckin Coffee after an investigation found that the company's COO fabricated sales. Yahoo Finance's On The Move panel discusses.

  • Wells Fargo: 2 Big 11% Dividend Stocks to Buy (And 1 to Avoid)
    Business
    TipRanks

    Wells Fargo: 2 Big 11% Dividend Stocks to Buy (And 1 to Avoid)

    Stock markets fell 4.4% yesterday, marking the third session in a row of losses. There's a feeling of gloom; President Trump has said that the country and economy are in for a hard two weeks in the first half of April as the coronavirus epidemic peaks in the States, and he walked back his previously stated hope to see the country 'get back to work' by mid-month. It's in times like these that investors, when they buy, start looking that much harder at dividend stocks.

  • Stock Market Has Entered a 25-35year Crisis Cycle Re-evaluation Event
    Business
    FX Empire

    Stock Market Has Entered a 25-35year Crisis Cycle Re-evaluation Event

    These super-cycles and the broader “collateral damage” issue is what leads our researchers to believe the US and Global markets may continue to target much deeper price support levels before finding a bottom. Even though the US and global central banks are doing everything possible to avoid a contagion economic collapse, we believe many people have “forgotten” about these broader market cycles and may be shocked to learn the COVID-19 virus event is happening in the midst of an 85-year generational Super-Cycle that predicts a true price bottom (new HIGH phase) may not set up until 2030~2035.

  • Homeowner Alert: Mortgage Rates Are Near a Record Low Again
    Business
    MoneyWise

    Homeowner Alert: Mortgage Rates Are Near a Record Low Again

    Mortgage rates have taken a tumble this week and are back at historically low levels, offering homeowners fresh opportunities to slash their monthly expenses as they cope with the economic turmoil caused by the coronavirus. Americans who refinance into cheaper mortgage rates might save hundreds of dollars per month, various experts say. If you spot an attractive mortgage rate that could offer you substantial savings, lock that rate while you have the chance.

  • Coronavirus pandemic to trigger 'another selling wave' in the stock market soon: expert
    World
    Yahoo Finance

    Coronavirus pandemic to trigger 'another selling wave' in the stock market soon: expert

    Brace for another selling wave in the markets, numerous veterans of Wall Street tell Yahoo Finance. So much for the “rebalancing rally” in stocks that has erupted this past week. Is the market going down 50% a la the dot com bubble?

  • Auto sales drop amid COVID-19 crisis
    Business
    Yahoo Finance Video

    Auto sales drop amid COVID-19 crisis

    Yahoo Finance's Rick Newman breaks down how bad the auto industry has been hit since the coronavirus outbreak.

  • Tesla Is 'Crushing The Auto Industry', Munster Says, As Company Posts Q1 Delivery Figures
    Business
    Benzinga

    Tesla Is 'Crushing The Auto Industry', Munster Says, As Company Posts Q1 Delivery Figures

    Tesla earlier in the day reported 88,400 deliveries and 102,672 total production in the first quarter this year, beating analyst estimates. Munster noted that Tesla's delivery numbers are up 40% year-on-year in the first quarter, at a time when the overall United States auto industry numbers are down 29%. Loup Ventures would give their estimate for the second quarter when there's better clarity surrounding the novel coronavirus (COVID-19) pandemic.

  • Investor who called coronavirus collapse: Stocks aren't even close to a bottom
    Business
    Yahoo Finance

    Investor who called coronavirus collapse: Stocks aren't even close to a bottom

    There aren't a lot of investors who can say they warned clients about the coronavirus crisis and eventual 30% stock market collapse, but hedge fund founder Dan Niles is certainly one of them. In a February letter obtained by Yahoo Finance sent to clients of his long-short Satori Fund, Niles warned he was becoming “increasingly worried” that central bank accommodativeness was overshadowing the impact that COVID-19 would have on the global economy. After adjusting his position before the S&P 500 fell by more than 30%, his Satori Fund finished the first quarter in the green.

  • Elon Musk's SpaceX Bans Employee Use Of Zoom: Report
    Business
    Benzinga

    Elon Musk's SpaceX Bans Employee Use Of Zoom: Report

    Tesla (NASDAQ: TSLA) CEO Elon Musk's rocket company SpaceX is banning employees from using video conferencing app Zoom Video Communications (NASDAQ: ZM), citing "significant privacy and security concerns," Reuters reported Wednesday. On Monday, the New York Times reported that the office of the New York Attorney General is probing Zoom's data privacy and security practices. In a letter to Zoom, the AG's office asked the telecommunications company what security measures it has taken in light of the increased traffic on its network, according to the Times.

  • 20 technology stocks with low debt to consider owning in a down market
    Business
    MarketWatch

    20 technology stocks with low debt to consider owning in a down market

    a href="https://www.marketwatch.com/investing/stock/ftnt" (FTNT) 2.2% -16% -6% 52% 12/31/2019 Computer Communications IPG Photonics Corp.

  • Luckin Coffee Scandal Deals New Blow to Corporate China
    Business
    Bloomberg

    Luckin Coffee Scandal Deals New Blow to Corporate China

    The fallout from Luckin Coffee Inc.'s accounting scandal is spreading far beyond the high-flying Starbucks challenger, with renewed concerns about Chinese corporate governance dragging down stocks across industries and threatening to bring a halt to the country's overseas initial public offerings. The Xiamen-based coffee chain said on Thursday that its chief operating officer and some underlings may have fabricated billions of yuan in sales, upending what was supposed to be one of China's best growth stories. Luckin Coffee shares plunged as much as 81% in U.S. trading and CAR Inc., a rental company founded by Luckin Coffee's chairman, sank 54% in Hong Kong.

  • Oil could set new all-time low below $10, says analyst who called collapse
    Business
    Yahoo Finance

    Oil could set new all-time low below $10, says analyst who called collapse

    Oil prices may have surged 25% Thursday to set a record intraday gain on the back of optimism that Russia and Saudi Arabia might reach a production truce to buoy prices, but that doesn't necessarily mean the commodity is in the clear just yet. After trading above $45 a barrel earlier in the year, the price of West Texas Intermediate has cratered as oil suffered a one-two punch of rising supply due to a failure of Saudi Arabia and Russia to agree on production cuts and the coronavirus crisis leading to a complete collapse of demand. “I know Trump is talking about these tweets about pulling production, it is not enough without the other side of the equation, the demand side,” oil analyst and editor of The Schork Report Stephen Schork told Yahoo Finance.

  • Oil analysts sceptical about Saudi-Russian 'deal'
    Business
    Reuters

    Oil analysts sceptical about Saudi-Russian 'deal'

    U.S. President Donald Trump is stoking the possibility of Saudi Arabia and Russia negotiating oil output cuts as the coronavirus outbreak hammers demand. Trump said on Thursday he had brokered a deal between the two, but made no offer to reduce U.S. output, and benchmark Brent oil futures surged 21% in a record one-day rise. Below are analysts' views (in alphabetical order): COMMERZBANK * "Saudi Arabia will probably demand big cuts in production from both Russia and the U.S. (whose oil industry currently appears hardest hit by the crisis) * Any (voluntary) cut of 10 million bpd or more will be difficult to implement, and as such is illusory."

  • Small Biotech Jumps On $100 Million Cancer Deal With Pharma Giant J&J
    Business
    Investor's Business Daily

    Small Biotech Jumps On $100 Million Cancer Deal With Pharma Giant J&J

    Shares of Fate Therapeutics soared Thursday after the biotech company announced a deal with Johnson & Johnson to develop cancer treatments. In after-hours trading on the stock market today, Fate stock jumped 28.1%, near 27. During the regular session Thursday, shares advanced 4.3%, to 21.07.

  • Politics
    Barrons.com

    Nancy Pelosi’s Husband Bought Up Slack, Microsoft, and Alphabet Securities

    In late February, when the U.S. stock market was in the early stages of slipping on news of the coronavirus outbreak, House Speaker Nancy Pelosi's husband, Paul, began buying up tech stocks and stock options. Paul Pelosi, a businessman and investor, paid up to $3.3 million in total to buy (GOOGL) (ticker: GOOGL) and (MSFT) (MSFT) stock options, and (WORK) stock (WORK), an April 1 regulatory filing from Speaker Pelosi shows. All three stocks have been outperforming the broader market, as measured by the S&P 500 index, although only Slack stock sports a year-to-date gain.

  • Trump Faces Bitterly Divided Oil Producers in Bid to Save Shale
    Business
    Bloomberg

    Trump Faces Bitterly Divided Oil Producers in Bid to Save Shale

    In the U.S., there are more than 6,000 oil drillers -- everything from tiny wildcatters in the shale patches of Texas and North Dakota to global giants like Exxon Mobil Corp. That would seem to make formulating a coherent U.S. negotiating stance next to impossible. And yet, President Donald Trump appears to be intent on seeking to broker a dramatic cut in output along with Saudi Arabia and Russia to prop up plunging prices.

  • Business
    MarketWatch

    Corona beer parent Constellation Brands tops profit and sales estimates for Q4, unable to offer guidance

    Corona beer brewer Constellation Brands Inc. (stz) said Friday it had net income of $398.4 million, or $2.04 a share, in the fourth quarter, down from $1.239.5 billion, or $5.87 a share, in the year-earlier period. Chief Financial Officer Garth Hankinson said the company has "significant" capacity under its $2 billion revolving credit facility and plans to carefully manage its debt position over the next 24 months. It said it took a loss of $31.78 million on its investment in Canadian cannabis company Canopy Growth Corp. (cgc)(ca:weed) in the fourth quarter and a loss of $575.9 million on the year.