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Gold strengthening as Guam missile crisis continues 

USS Ronald Reagan

Gold rose again on Thursday as tensions between North Korea and the US continued to impact markets. This morning gold had reached $1,286.33 while gold for delivery in December rose 0.8% to $1,290.10.

The ongoing political crisis that has seen North Korea state it was seeking to strike the US Pacific island territory of Guam “within days”, prompted gold speculator Dennis Gartman, editor and publisher of The Gartman Letter, to say he believed gold was on the cusp on a significant break out. “One never knows when geopolitical risks will arise. One never knows when something untoward will happen economically,” he told CNBC. “The stock market looks a little vulnerable. The geopolitical circumstances are getting worse and worse.”

Gartman’s comments follow Bridgewater Associates founder Ray Dalio’s gold recommendation: “We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit,” Dalio wrote in a LinkedIn blog post.

Fawad Razaqzada of Forex.com told Reuters “the war of words between the leaders of the U.S. and North Korea continue to dominate investor sentiment. Gold and silver are higher, thanks mainly to their status as safe-haven commodities.” Like gold, silver has also seen a rise, reaching a high of $17.24, before finishing 1.1% up at $17.08. Platinum also moved up 0.8% to $979.85, while palladium moved up a percentage point to $900.30.

In Australia, mining stocks also benefitted from the strength of gold. Northern Star Resources and Westgold Resources rising 3% and 6.6% respectively. Other companies were also up; Newcrest Mining moved 2.3%, Resolute Mining 2.1% and Evolution Mining rose 2%. These mark a bucking against the 1.3% fall in Australia’s benchmark index. Gold miners bucked the 1.3% fall for Australia’s benchmark index. Northern Star Resources was up 3%, while Evolution Mining rose 2%, Newcrest Mining gained 2.3% and Resolute Mining rose 2.1%. Westgold Resources was the biggest gainer, rising 6.6%.

 

Photo: Aircraft carrier the USS Ronald Reagan enters Guam’s Agana harbour. Credit: MCSC Spike Call

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-strengthening-as-guam-missile-crisis-continues-13340/

Posted by on Aug 11 2017. Filed under Gold News. 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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