Shadow of war in the Middle East; Oil and gold rise, stocks fall
Following the increase in tensions between Tehran and Washington and concerns about the possibility of war in the Middle East, global oil and gold prices rose and stock prices in European and Asian markets fell. The German stock exchange (DAX) lost 2 percent of its value.
Concerns about escalating tensions between the United States and Iran, which are said to be capable of escalating into a hot war, have severely weakened the global investment and trading situation and put it at risk. This is despite the fact that capital market trading was showing an improving trend at the start of the new year (2020).
According to the German news agency (DPA), today, January 6, the price of gold reached $1,588.13 per ounce, the highest price level since 2013, when investors were looking for safe investments.
Volatility in relatively safe German and Swiss markets
German bonds and the Swiss franc, which have always been relatively safe places to invest, have also been volatile. The stock market has also been weakened by investor concerns and instability.
This situation follows the killing of Qassem Soleimani, the commander of the Islamic Revolutionary Guard Corps' Quds Force, in a US drone strike in Baghdad last week. Tensions in global trading markets have intensified following the incident, after Iranian officials threatened the United States with "harsh revenge."
US President Donald Trump has also threatened Iran with further retaliatory measures if it attacks US personnel and interests, as well as its partners in the Middle East.
Following the tensions, the German stock market index (DAX) lost 2 percent of its value. The DAX is a blue-chip stock market index consisting of 30 major companies on the Frankfurt Stock Exchange.
Now, saving oil is a priority in all sectors. On the other hand, the stock market in airlines such as Lufthansa has also been affected.
In this regard, the German Postbank announced: "The US military attack suddenly ended the New Year's joy."
Japanese stocks also fell today. In the first trading session of the new year, the Nikkei 225 lost 451.76 points, or 1.91 percent.
Rising trend in gold and oil prices
With the opening of the global gold trading market, the price of this precious metal has been on an upward trend since early this morning, and even before the prices were announced, the price per ounce increased to $1,577.26, which is a 1.6% increase compared to Friday, the last trading day.
The price of gold was around $1,450 per ounce in December 2019, and has been on an upward trend since last month as tensions in the Middle East increased.
Amidst tensions in the Middle East and new mutual threats between Iran and the United States, as well as concerns about a war in the region, the price of oil, this black gold, also increased today.
The United States is one of the largest oil producers and places great emphasis on this energy source. The current concern of countries is the shortage of oil.
The price of a barrel of West Texas Intermediate crude oil has reached $64.72, the highest price since April.
The price of this oil and Brent crude oil has increased by about 6% since the beginning of 2020.
In recent days, with tensions rising in Iraq, lawmakers in the country passed a resolution calling for all American troops to leave the country on Sunday. Iraq said the resolution was issued in response to US strikes that killed Qassem Soleimani and his colleagues in the IRGC's Quds Force, as well as officials from the Shiite Popular Mobilization Forces.
In response to this resolution by the Iraqi parliament, the US President has threatened to impose sanctions on the country.
Source: DW
