Possible conflict boosts gold

9 August, 2017

The gold price is on the rise today after comments by US president Donald `Trump about North Korea which increased the chances of a military conflict.

At 10.57am(GMT) the gold price was trading at $1,268 up from $1,261 in yesterdays trading session.

In a no holds barred speech, President Trump said that North Kore would face “Fire and Fury” like the world has never seen if it continued to develop nuclear weapons and North Korea responded by threatening to bomb the US Pacific territory of Guam

"Trump's comments about North Korea have created nervousness and the fear is if the President really means what he said: fire and fury. The typical text book trade is that investors rush for safe havens." said Naeem Aslam, chief market analyst at Think Markets in London.

Gold is now expected to remain well supported until the situation between the US and North Korea becomes clear and gold is expected to attract investors looking for a safehaven for the foreseeable future

"We likely will continue to see more tension in the region, this in turn suggests that at least for the balance of this week, we likely should be long gold as the heated rhetoric could raise the odds of military action." Noted INTL FCStone analyst, Edward Meir.


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