Trump administration announces ‘economic D-day’ sanctions on Iran
Treasury Secretary Scott Bessent says US sanctions will intensify to choke off Iran's revenues and isolate the country.
Gold prices have climbed to a three-month high of $4,681 as the US Treasury imposed sanctions on Iran-linked entities. These measures, dubbed "Outcast," target Tehran's vital lifelines, including digital assets, technology, gold, aviation, and shipping. Nearly 60 entities linked to Iran have been sanctioned, aiming to block potential revenue sources for the Islamic Revolutionary Guard Corps (IRGC).
The US Dollar Index (DXY) rose 0.22% to 99.05, while US Treasury yields fell by 3.5 basis points to 4.700%. The precious metal's rally is fueled by increased demand for a haven asset, with gold ETFs attracting inflows of 46.7 million tons worth $6.4 billion in a single week. Central banks are also boosting their gold holdings, adding 1,136 tonnes in 2022 alone.
Gold's inverse correlation with the US Dollar and risk assets, along with its role as a hedge against inflation and currency depreciation, make it an attractive option during turbulent times.
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- Gold rallies as Iran sanctions stoke haven demand fxstreet.com
