Gold grabs a safety bid ahead of the weekend

Gold prices have rebounded strongly from $3343 in the past hour, rising about $25.

I think there is some demand for safety into the weekend on the risk that the US enters the war in Iran. There could also be some technical bids after the earlier low of $3340 held.

Most global markets are pricing in some chance of a US-Iran war but it’s tough to pin down how much, or to what extent the US gets involved or Iran retaliates. It’s a real potential mess once you start to think about how the US might get out of any war it joins and if there’s a real path to regime change here.

In contrast, the price of oil is down to $72.99 from the earlier high of $75.74 as some profit taking hits.

This article was written by Adam Button at www.forexlive.com.