Gold News: Gold Spikes Back Up Following Market Uncertainty
Gold News
As tensions rise between Saudi Arabia and Iran, and China’s economy remains stagnant, gold is off to a good start in the new year, as it has risen to $1,081 an oz.
Many investors rely on gold in times of market uncertainty, and as it is often seen as an alternative investment The conflict in the Middle East between Iran and Saudi Arabia, has helped gold rise in two ways. The conflict has now caused Saudi Arabia to raise their oil prices, as they have cut off all ties with Iran. Gold has a hedge in oil-led inflation.
In China share markets fell 7% following a manufacturing survey that showed production is down for the tenth consecutive month. This has weakened the yuan which is one of the leading gold traders.
Gold’s price bumping upward at the beginning of the new year is common, as there tends to be a lot of safe haven buying at the beginning Despite the problems in China and the middle east, most analysts remain bearish on gold. Safe haven buying usually leads to a shorter term bump, and interest rates will continue to rise.
