Gold jumps to $1290 after Flynn pleads guilty
- Gold jumps 1% in minutes as demand for safe-haven assets soar.
- Michael Flynn pleads guilty to lying to the FBI.
- Former Trump affirms that Trump knew of talks with Russians.
A new round of the Russiagate hit US markets late on Friday. Former national security adviser Michael Flynn pleaded guilty to lying to the FBI and the media reported that he was prepared to testify that as a candidate, Trump directed him to make contact with the Russians.
Equity prices reversed sharply as investors rushed for safe-haven assets. Gold climbed 1.10% in a few minutes. The yellow metal rose from $1274/oz to $1289.10, the highest level in two days. During the last minutes, the US dollar recovered some ground and gold pulled back toward $1280.
Market volatility jumped with the latest news. The Dow Jones lost more than 300 pips, falling from near record highs to levels under 24,000. As of writing it was at 24,150 moving off daily lows. The yen jumped in the market boosted by a rally in US bonds.
Levels to watch
To the upside, the immediate resistance is seen at $1290 (Nov 28 low), followed by $1295 and then the $1300 handle. On the flip side, the area around $1280 has become the immediate support, followed by $1274 (Nov 20 low) and $1271 (Dec 1 low).