Gold Jumps to Record High After Iranian President's Death

Rescue team at the crash site in Varzakan, East Azerbaijan province, Iran, on Monday Photo: Reuters

Gold surges to new level reached record high after the death of Iran's president in a helicopter crash.

Bars jumped 1.1% to $2,440.59 an ounce after Iranian President Ebrahim Raisi, Foreign Minister Hossein Amirabdollahian and all other passengers on board were killed when the plane crashed in northwestern Iran.

His death has heightened tensions in the Middle East, which analysts say is boosting the appeal of the metal as a safe haven in times of turmoil.

However, this is a sign that markets are less worried about this. due to the threat of instability, the price of oil remained relatively stable.

Brent crude, the international benchmark, rose just 0.4% to a one-week high of $84.33 after the plane crash. Nicholas Frappell, global head of institutional markets at the ABC refinery in Sydney, said: «The rally gold was driven by the news due to uncertainty about what happened in Iran.

“There will inevitably be an element of jumping to conclusions based on very little information.”

Gold's rise also comes amid optimism about the actions of the US Federal Reserve. two interest rate cuts this year after last week's inflation data came in below expectations.

That provided support for the dollar-denominated precious metal.

Gold wasn't the only metal to hit a record high overnight.

Copper jumped to a new all-time high on expectations that rising demand will lead to supply shortages.

p>The price of copper on the London Metal Exchange rose above $11,000 a tonne for the first time.

Prices have risen by more than a quarter since the start of this year, thanks in part to China's rollout of real estate stimulus and bullish Industrial production data.

Markets rose in early trade on support from mining companies.

The blue-chip FTSE 100 index rose 0.3% and the mid-cap index rose by 0.3%. The FTSE 250 rose 0.4%.