Gold News: Gold Prices Rise Following Paris Terrorist Attack
Gold News
After hitting a five year low last week, gold price rose on Monday, due to the terrorist attacks in Paris that left 129 dead on Monday. Gold has risen to $1086.75 an oz .
The reason for the rise in price of gold is due to an increase in demand as the metal is viewed as a safe-haven. The terrorist attacks sparked uncertainty about the global economy and commodities such as gold and crude oil are often viewed as safe bets. However gold’s role as a safe-haven has been called into question as its price has dropped.
Most analysts expect gold’s rise to be short-lived. As coverage of the terrorist attack will inevitably begin to fade, investors will gradually begin to focus more on the U.S. Federal Reserve and the interest rate. Talks last month at a Fed meeting gave a strong indication that the interest rate will more than likely increase in December, for the first time in almost a decade. A rate hike would weaken gold’s price.
Gold price rose to a high of $1090, but has already begun to drop down as the French government has promised to invest more.
