Gold prices erased earlier losses, jumping more than $20 to $2405 after Israel’s defense minister said Hezbollah crossed red lines with a missile attack that killed 12 children. The response was a missile attack that the IDF said targeted the commander responsible for the attack.
However two security sources cited by Reuters said the commander survived the attack, though two others were killed.
In any case, the gold market is once-again pricing the possibility of a spiralling war with Lebanon and Iran potentially getting involved.
The trade so far on all the similar headlines over the past 9 months has been to fade the rally.