Gold and Oil Prices Jump After U.S. Strike Kills Top Iranian Commander in Iraq

Both oil and gold were up strong following news of the U.S. assassination in Iraq of two top Iranian military leaders.

Oil futures in New York and London surged more than 4% on the news that U.S. air attacks killed Qassem Soleimani and Abu Mahdi Al-Muhandis.

Both were high-level Iranian military officials, equivalent to members of the U.S. Joint Chiefs of Staff.

A fierce response is expected from Iran.

Brent for March settlement climbed as much as $2.81, or 4.2%, to $69.06 a barrel on the London-based ICE Futures Europe Exchange.

West Texas Intermediate for February delivery rose as much as $2.66, or 4.4%, to $63.84 a barrel on the New York Mercantile Exchange.

Gold ran up $11.90 to approximately $1,540 ounce, hitting a four-month high in evening trading. Prices are up 1.9% this week.

With a violent Iranian response due at any time, gold and oil will stay strong.

Meanwhile, Senator Lindsey Graham is not doing anything to calm things down. In a tweet following the U.S. assassinations, he said, "if Iran continues to attack America and our allies, they should pay the heaviest of prices, which includes the destruction of their oil refineries."

And he also added to stir the pot:

If Iranian aggression continues and I worked at an Iranian oil refinery, I would think about a new career.

— Lindsey Graham (@LindseyGrahamSC) January 3, 2020

And this doesn't even take into consideration the mad money printing the Fed is doing at this time which will supoort the SOG (silver, oil, gold). For details on what the Fed is up to see the EPJ Daily Alert.

-RW

UPDATE

Friday morning, gold is now up $20.50 per ounce.