Gold is at a level not seen since the middle of June and a quick look at geopolitics could offer a possible explanation. The news is full of reports of the latest crisis between the US and North Korea and the countries’ policy makers are not holding back, using harsh words.
After North Korea conducted missile tests, President Donald Trump openly and publically threatened the communist nation with “fire and fury”. The rising tensions were followed with an increased demand for so-called safe haven assets, and gold prices rose.
Needless to say, the precious metal isn’t an isolated instrument and the recent increased in its prices has also pushed up the share price of mining-companies.
Of course, it’s impossible to pinpoint the price change to just a single factor. This week, some reports suggested that Indian imports of the gold have doubled. This is especially important since India is currently the world’s second largest gold importer.
What will happen between the US and North Korea and how will this affect the market? Take advantage of the daily news and analysis at iFOREX and stay informed regarding recent market events.
Found this article interesting?
Want to see how quickly you can take your first steps in the world of online trading?
iFOREX has one of the most popular training packages.