What has pushed up the gold price?
By Daryl Jackson, News Editor
06 Sep 2017
The price of gold has certainly rallied of late climbing from levels under $1,212 an ounce in July to as high as $1,342.90 this week, touching its highest levels in around a year.
It has been widely assumed that the increase in investors turning to the precious metal and the price is directly linked to the ever-increasing tensions in North Korea. However, that is not what is boosting the precious metal according to a note released by Goldman Sachs on Tuesday.
According to the bank, uncertainty inspired by President Donald Trump has boosted the yellow metal. Having said that, the do say that some of the metal's gains have coincided with increased tensions around the world, including when North Korea claimed a successful hydrogen bomb test on Sunday.
Goldman said in a note:
"We find that the events in Washington over the past two months play a far larger role in the recent gold rally followed by a weaker dollar…"
"In coming months, the unfortunate aftermath of hurricane Harvey suggests that Washington is going to have to overcome their differences, pass spending bills, try harder to avoid a government shutdown and pursue infrastructure projects sooner than later," it said.