2020.01.0609:58:00UTC+00Gold Hovers Near Seven-year High

Gold prices hit their highest level in nearly seven years on Monday as intensifying tensions in the Middle East drove investors towards the safe-haven metal.

Spot gold was up 1.6 percent at $1,576.69 per ounce, after having touched its highest level since April 10, 2013 at $1,579.55 earlier in the session. U.S. gold futures were up 1.7 percent at $1,578.65.

Risk sentiment remains fragile after Iran vowed "severe revenge" against the United States for killing top commander Qasem Soleimani and U.S. President Donald Trump threatened Iraq with harsh sanctions if the country forced out U.S. troops.

The threat against Iraq, the second largest producer among the OPEC, comes after its parliament voted in favor of a resolution calling for an end to the foreign military presence in the country, including the estimated 5,200 U.S. troops stationed to help fight Islamic State extremists.

Iran announced Sunday it would no longer abide by the limits contained in the 2015 nuclear deal while reports from Baghdad say the U.S. embassy compound there was targeted in an attack on Sunday evening.

Investors ignored reports suggesting that Chinese officials plan to visit Washington next week for the signing of a trade deal with President Donald Trump.