Gold prices steadied after shooting up to a near six-year high on Friday, surpassing the key $1,400 level on dovish signals from major central banks and rising tensions in the Middle East.
Spot gold was up 0.1% at $1,388.60 per ounce at 0958 GMT, after earlier hitting its highest since Sept. 2013 at $1,410.78.
U.S. gold futures dipped 0.3% to $1,392.1.
“The Iranian tensions provided the catalyst for gold to inch above $1,400, after threatening to break above that level since yesterday’s dovish Fed outcome,” said Howie Lee, an economist at OCBC Bank.
“There is a perfect mix of ingredients for gold’s rush to the top a weak macroeconomic environment, low bond yields, soft dollar and rising geopolitical tensions.”
Iranian officials told Reuters on Friday that Tehran had received a message from U.S. President Donald Trump through Oman overnight warning that a U.S. attack on Iran was imminent.
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