Summary
The price of gold went above $5,000 per ounce after the U.S. shot down an Iranian drone. This increase in price happened amid continuing uncertainty in global politics and changes in U.S. economic policies. Recently, gold hit a peak of $5,500 per ounce but then dropped sharply after President Trump nominated Kevin Warsh to lead the Federal Reserve.
Key Facts
- Gold's price rose above $5,000 on news of the U.S. downing an Iranian drone.
- Gold is considered a "safe haven" investment during uncertain times.
- The price jump left gold 80% higher compared to the previous year.
- An Iranian drone was shot down by the U.S. as it approached an American aircraft carrier.
- Gold's price previously peaked at $5,500 in January.
- A 9% drop in gold prices happened after Trump's nomination of Kevin Warsh for Federal Reserve chair.
- Trump's nomination is seen as a stabilizing move for the central bank's independence.
- The gold price drop last Friday was the largest one-day decline since 1983.
