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It’s been a volatile week for gold. After breaking out to its highest levels since April 2013, the yellow metal has since reversed sharply. As of writing, it is ending the week back below the 2019 high.

The initial upside in gold was driven by a wave of risk-off trading in reaction to news of escalating tensions between the US and Iran. Following the state funeral of Iranian general Soleimani, who was killed by a US airstrike last week, Iran retaliated for the attack by launching ballistic missiles at two US army bases in Iraq.

As news of the rocket attack broke, equities collapsed. Traders feared the move might push the US and Iran into war. However, Trump downplayed the significance of the attack.

He addressed the nation saying that according to intelligence, Iran was stepping down and as such, the US would not be entering a military conflict with it.

As quickly as gold had rallied, the reversal saw prices cascading lower. Equities traders cheered the news and drove index prices...

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