Investors rush to havens on escalating US-Iran tensions

June 25, 2019: Escalating tensions between the United States and Iran dampened equity markets and the dollar Tuesday but lifted haven investments the yen and gold, with the latter striking a near six-year high.

Oil prices steadied despite the US imposing further sanctions on key crude producer Iran, with investors on the sidelines ahead of next week's key OPEC meeting on output.

Traders looked ahead also to crucial trade talks due this week between US President Donald Trump and Chinese counterpart Xi Jinping.

“Geopolitical tensions weighed on the (stock) markets on Tuesday after the US imposed new sanctions on Iran,” noted Russ Mould, investment director at AJ Bell.

“Investors (are) switching their attention once again to gold as a safe-haven asset.”

The precious metal struck $1,439.65 an ounce Tuesday, the highest level since September 2013, with a softer dollar lending additional support according to traders.

Japan's currency, viewed also as a haven investment, jumped to a near six-month high at 106.78 yen to the dollar.

AFP/APP

Posted on: 2019-06-25T16:34:00+05:00

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