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Gold surges to record high after Iran’s president killed in crash

Crash site
A rescue team at the crash site in Varzaqan, East Azerbaijan Province, Iran, on Monday - Reuters

Gold jumped to fresh record highs after Iran’s president was killed in a helicopter crash.

Bullion jumped as much as 1.1pc to hit $2,440.59 an ounce after Iranian President Ebrahim Raisi, Foreign Minister Hossein Amirabdollahian and all the other passengers onboard died when the aircraft came down in northwest Iran.

His death has added to tensions in the Middle East, which analysts said increases the appeal of the metal, which is considered a safe haven in times of turmoil.

However, in a sign that markets were less concerned about the threat of instability, the price of oil remained relatively steady.

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Brent crude, the international benchmark, rose just 0.4pc to a one-week high of $84.33 after the aircraft came down.

Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney, said: “Gold’s rally is news-driven with uncertainty about what happened in Iran.

“There is bound to be an element of jumping to conclusions on the basis of very little information.”

The rise in gold also comes amid optimism that the US Federal Reserve will make two interest rate cuts this year after inflation figures last week were lower than expected.

That offered support for the precious metal, which is priced in the dollar.

Gold was not the only metal hitting record highs overnight.

Copper jumped to a fresh all-time peak amid expectations that increased demand will lead to supply shortages.

The price of copper on the London Metal Exchange rose above $11,000 a ton for the first time.

Prices have gained more than a quarter since the start of this year, boosted in part by China rolling out property stimulus measures and upbeat industrial output data

Markets moved higher in early trading amid the boost from metal miners.

The blue-chip FTSE 100 was up 0.3pc, while the mid-cap FTSE 250 climbed 0.4pc.