Jan 8 (Reuters) - Gold prices surged more than 2% on
Wednesday, crossing the key $1,600 mark, as investors sought
cover in the safe-haven metal after Iran fired rockets at Iraqi
airbase which hosts U.S. forces.
FUNDAMENTALS
* Spot gold XAU= climbed 1.9% to $1,603.21 per ounce by
0056 GMT. Prices hit their highest since March 2013 at $1,610.90
earlier in the session. U.S. gold futures GCv1 rose 2% to
$1,605.80.
* The jump in the price of what's viewed by investors as a
safer asset in times of political and economic uncertainty came
after Iran's missile attack on U.S.-led forces in Iraq early on
Wednesday. The attack came hours after the funeral of an Iranian
commander whose killing in a U.S. drone strike has raised fears
of a wider conflict in the Middle East. * The United States confirmed reports of the attack by Iran
and said President Donald Trump had been briefed and the
situation was being monitored. * On the trade front, in a move that would make it tough for
Beijing to meet import commitments in its 'Phase 1' trade deal
with the United States, China will not increase its annual
low-tariff import quotas for corn, wheat and rice to accommodate
additional purchases of U.S. farm goods. * Elsewhere, palladium XPD= hit a fresh all-time peak of
$2,056.01 an ounce earlier in the session on a sustained supply
deficit, and was last down 0.6% to $2,040.57.
* Silver XAG= jumped 1.2% to $18.60 per ounce, after
hitting its highest since late September at $18.71, while
platinum XPT= advanced 0.3% to $973.95.
DATA/EVENTS (GMT)
0700 Germany Industrial Orders MM Nov
0745 France Reserve Assets Total Dec
0830 UK Halifax House Prices MM Dec
1000 EU Consumer Confid. Final Dec