Posted on 8th January 2020
With America and Iran in a constantly heating stand off, the markets wait with baited breath to react.
Late last night Iran respsonded to donald trumps fire power, with a show of force themselves. After Trump killed a key Iranian general, Iran promised to respond with force, and with force they did respond. 12 Cruise missiles were fired at an iraqi US military base causing havoc in the late US and early asian sessions. Gold and Oil were sent in the same direction as the cruise missiles, straight up skyward only to meet the same fate, crashing back to earth with a bang. Gold, Oil, Franc and the Yen all made strong gains after the shock news broke due to the safe haven ethos surrounding them but quickly wiped the gains off the board as the UK markets opened at 8am this morning with a very much risk on attitude resuming play. At this moment in time the markets don't seem too bothered about the Iran-US unrest that is currently very prevelant in the world, however we will have to wait and see where we end up in the next 24 hours as trumps response is being eyed up as the next move. Iran have said they want no war, but will actions speak louder than words? Have both sides gone too far this time? We can only wait and see, but if anything does kick off the safest bets will be Oil and Gold long.