Retired Gen. Jack Keane, senior strategic analyst for Fox News, discusses Iran’s attack on U.S. military bases in Iraq.
Gold prices rallied sharply following an Iranian attack on U.S. forces at two Iraqi bases but pulled back after President Trump confirmed there were no casualties.
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The attack was conducted to avenge the U.S. killing of Iranian Gen. Qassim Soleimani, blamed for masterminding the slayings of American troops in Iraq.
“All is well!” Trump tweeted Tuesday evening. “Assessment of casualties & damages taking place now. So far so good!”
The precious metal hit an almost seven-year high of nearly $1,612 an ounce Tuesday evening. It was trading up 0.1 percent at $1,576 an ounce on Wednesday.
IRAN’S OIL MUSCLE WEAKENED BY US ENERGY DOMINANCE
Investors typically flock to gold during periods of geopolitical turmoil, since the metal holds its value when paper currencies are declining.
“This most often happens during wars or military escalations,” Jeffrey Currie, global head of commodities at Goldman Sachs, wrote in a note to clients on Monday.
Owning gold is a “better hedge” than oil, he added.
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Gold has gained 3.1 percent since Soleimani’s death while Brent crude oil, the international benchmark, is up 2.3 percent.
