Gold bullion again knocking on the door of the key $1300 level!
10 Oct 2017 By Daryl Jackson
Spot gold was up 0.4% at $1,291.53 an ounce by 10.09am GMT on Tuesday, having earlier touched its highest since late September at $1,291.82. Investors were particularly wary on Tuesday as Pyongyang celebrated the founding of its ruling party, a day after Russia and China both called for restraint on North Korea following a Twitter post from U.S. President Donald Trump hinting that military action was on his mind.
In Spain, the Catalan president plans to address the region's parliament on Tuesday evening - with an expectation that he will say if he is declaring independence from Spain.
Despite slight falls in the precious metal so far this month, the overall picture for gold remains positive, with gold still up about 11 percent in 2017.
Julian Chillingwith, CIO, Rathbones said in an article this week:
“…gold is that of a hedge against rising geopolitical tensions. This relationship has been demonstrated during numerous periods in the past, with the most recent example being the sabre-rattling between the US and North Korea. As tensions have increased, gold prices have risen.
“The precious metal serves as the ultimate hard currency and should perform well in a highly inflationary environment where confidence is lost in central bank policies and faith in the monetary establishment is shaken…”