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Gold price climbs even higher over international concerns

Rex Tillerson. Photo Credit: William Munoz. Edited with TVScanline. https://www.flickr.com/photos/william-munoz/

The gold price has surged further as geopolitical risk continues.

Today bullion rose to $1,279.85 an ounce, the highest since 10 November, two days after the election of Donald Trump. Gold was at $1,275 by 1.40pm local time in Singapore and after-hours trading there saw futures reaching an intraday high of 1,277.40, according to Bloomberg.

Gold futures also surpassed their average price of the last 200 days, a common measure used by technical analysts to determine a trend.

Yesterday US Secretary of State Rex Tillerson hardened his rhetoric at the G7 meeting for foreign ministers in Moscow, saying the US will “[hold] to account any and all who commit crimes against the innocents,” stoking fears of a deepening conflict of interest in the Syrian crisis, ramped up by last Thursday’s US airstrikes.

The worsening crisis in Syria parallels that of North Korea, which drew a line in the sand on Tuesday by claiming it would launch a nuclear attack on the US if provoked; last week it launched a ballistic missile into the sea. Trump has pledged to solve the North Korean “problem” with or without China’s help. This comes in wake of his meeting with Xi Jinping, aimed at sweetening US-China relations.

In a telephone interview to Bloomberg, senior commodity strategist at RJO Phil Streible commented that “you could see our relations deteriorate pretty fast with Russia, and things could escalate quickly”. He went on to add that “it seems we’re one disagreement away from World War III starting, and so gold is getting a boost.”

Domestically, Trump will still aid the gold bulls, according to Forbes contributor Bryan Rich:“if Trump’s growth plan plays out, inflation runs up, which is fuel for gold. And if Trump policies flop, the risk environment rises, which is fuel for gold”.

In mining news, stocks are getting a boost from the consistently bullish run on gold. According to CNBC the VanEck Vectors Gold Miners ETF was up 3 percent, on pace for its best daily performance since March 15, when it gained 7.69 percent.

CityAM reported that Randgold Resources shares closed up 4.84% to 7,580p and Fresnillo’s ascended 4.36% to 1,652p.

In other news an Australian psychiatrist has had $70k worth of bullion stolen from her home.

Dr. Rosemary Draper, from Ballarat, bought the gold in the 1980s as an investment. ABC news quoted her as saying “I had some spare cash, and I bought it as an inflation-proof investment at that time when inflation was quite high and the gold price was a lot lower than it is now.”

Gold bullion usually has serial numbers to help identify them in the case of loss or transferral of ownership, but in this case Dr. Draper has to rely on receipts from the merchant in order to track down the horde.

Ballarat was the the centre of a 19th century gold rush that helped establish the state of Victoria.

 

Photo Credit: William Munoz – Rex Tillerson. Edited with TVScanline. https://www.flickr.com/photos/william-munoz/

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-climbs-even-higher-over-international-concerns-13067/

Posted by on Apr 12 2017. Filed under Gold News, Mining. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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