ASX gold miners gain as US withdraws Middle East embassy staff
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The news: Gold miners are leading ASX 200 gains, tracking higher demand for the haven-asset amid deepening tensions between Iran and the US as the latter looks to pull non-essential embassy staff out of the region.
The numbers: At 12:00pm AEST, West African Resources was the biggest gainer, up 6.3% to $2.37. Genesis Minerals was up 5.7% to $4.7, Vault Minerals was 3% higher at $0.43, and Emerald Resources was up 3% to $4.5.
The spot price of gold was up 0.47% to USD3,370.8 ($5,191.68) per ounce.
The context: The US has ordered all non-essential staff and family to leave its embassy in Baghdad, Iraq, after Iran threatened to strike regional US military bases amid faltering negotiations on its nuclear program.
Departure of non-essential personnel from Bahrain and Kuwait is also being authorised. US President Donald Trump has previously threatened to bomb Iran if a deal could not be reached.
Demand for gold as a hedge against economic uncertainty was also buoyed by Trump’s reminder that higher unilateral tariff rates on several countries is scheduled for 9 July.
The source: Bloomberg
