As predicted here on the COINage blog late last week, the news of the United States airstrikes that killed Iranian military major general Qasem Soleimani and the geopolitical fallout in the wake of this major development are pushing gold prices up. As the dawn rose over Eurasia on Monday morning, January 6, gold prices crossed the $1,580USD mark. That's up nearly $30 from its price of $1,552 on late Friday, January 3.
Now, with Iran threatening severe repercussions against the United States for the killing of General Soleimani and U.S. President Donald Trump threatening to destroy 52 Iranian landmarks of governmental and cultural importance should Iran exact revenge against the U.S., the possibility of war in Iran looms ominously. And the outbreak of a major war in the Middle East could cripple oil exports from the region and cause many grave threats toward United States interests throughout the region.
All of this will surely put extreme upward pressure on gold prices. And, while there's no bullion crystal ball, it's not implausible that gold could hit $1,600 or more this week if tensions continue mounting in the Middle East. The world anxiously waits to see what happens between the United States and Iran. At this moment, U.S. troops are being positioned throughout the Middle East. Will an official declaration of war soon be announced?