While most eyes are focused on Donald Trump’s trade war with China, there is another big set of sanctions about to hit. The US is set to impose extremely tight sanctions against Iran at midnight tonight, in case you’ve been living under a rock. (Or just avoiding the news because you’re tired of all the bickering…) And this round of sanctions has important implications that are today’s gold news.
As a result, Iranians have been buying gold with their currency, expecting their currency value to plummet. Which is exactly what it’s been doing. This is a little bit of a cart-in-front-of-the-horse game; after all, when people act like their currency is going to drop, their actions drive down the value of their currency. But in this case the concern is real. The Trump administration’s sanctions are quite severe, and will effectively shut down Iran’s trade with the US.
And with several other important customers of Iranian oil. And gold. You can read all about it in today’s featured article.