Gold skyrockets above $1,600 after Iran takes 'revenge' on US

Gold prices hit fresh highs, jumping more than two percent on Wednesday, as investors flocked to safe havens after Iran launched retaliatory strikes on a number of facilities hosting US forces in Iraq.

Spot gold topped $1,1610 an ounce during the trading session - a price that has not been seen since March 2013 - before scaling back below the key mark.

As of 07:47 GMT the yellow metal was trading at $1,589.10, posting a nearly one percent gain. US gold futures also rallied nearly 0.9 percent to $1,588.80 per ounce, after touching $1,605.80 earlier in the day.

Middle East tensions also drove palladium species to fresh all-time records, further cementing its status as the world's most valuable precious metal. It skyrocketed to $2,058 on Wednesday, according to Kitco News.

The precious metals have been rallying since Washington and Tehran started trading threats last week, following the US airstrike that killed Iranian top general General Qassem Soleimani. Shortly after the targeted assassination, Tehran vowed to take revenge and implemented its threat on Tuesday night, targeting US facilities in Iraq, and warned that it would strike US allies in the region if their territory is used for any follow-up attacks on Iran.

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