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Gold Moves Higher on Iranian Rocket Tests

Written By Luke Burgess

Posted July 9, 2008



Gold regained ground on Wednesday as speculators resurfaced on news that Iran had test-fired nine long- and medium-range missiles, lifting the metal’s safe-haven appeal in times of uncertainty.

Iranian General Hossein Salami, the air force commander of Iran’s elite Revolutionary Guards, said the exercise would "demonstrate our resolve and might against enemies who in recent weeks have threatened Iran with harsh language."

Wednesday’s war games were being conducted at the mouth of the Strait of Hormuz, a strategic waterway through which about 40% of the world’s oil passes. Iran has threatened to shut down traffic in the strait if attacked.

Iranian state media showed footage of at least three missiles firing simultaneously, and said the barrage included a new version of the Shahab-3 missile, which officials have said has a range of 1,250 miles and is armed with a 1-ton conventional warhead. That would put Israel, Turkey, the Arabian peninsula, Afghanistan and Pakistan within striking distance.

– luke