Gold and crude oil – having been under pressure for much of US trade on Tuesday – have found renewed buying following remarks from Mike Flynn, US president Donald Trump’s national security adviser, that the US was putting Iran “on notice” after the nation conducted a ballistic missile test and attacked a Saudi navy vessel earlier this week.
“Recent Iranian actions involving a provocative ballistic missile launch and an attack against a Saudi naval vessel conducted by Iran-supported Houthi militants underscore what should have been clear to the international community all along about Iran’s destabilizing behaviour across the entire Middle East,” said Flynn, referring to Monday’s Houthi attack that killed two on a Saudi ship.
Those remarks, along with a bout of US dollar weakness following the release of the US Federal Reserve’s February monetary policy statement, had an immediate impact on crude and gold prices, signalling a lift in perceived geopolitical risk.
Here’s the 5-minute gold chart:
And a 5-minute chart for crude oil futures: