Gold News: Hydrogen Bomb Sparks 10 Month High For Gold
Gold News
In the latest gold news: As of September 04 at 11:53am EST, gold was trading at $1334.76 per ounce, pushing what is now a 10 month high even further for gold prices. At approximately this time last week, gold was trading at $1309.49 per ounce.
Recently, the North Korean government announced that it had successfully tested a hydrogen bomb and that its tested bomb could be fitted on to an Intercontinental Ballistic Missile (ICBM). This would give it international strike capabilities, a possibility which has worried many country leaders and prompted an American warning of massive retaliation in response if North Korea strikes. The result of this sudden geopolitical worry is that the investors are shying away from riskier assets and placing their faith in safe haven investments. This has been a constant trend over the last few months due to the political tension between North Korea and the United States. Gold prices have now reached a 10 month high due to the increased uptake in response to the North Korean news and investors expect this momentum to possibly increase even more if tensions continue to escalate.
However, certain analysts are cautioning that since this movement is so strongly based in the visceral market reaction to the political tension, the price gold could just as quickly drop back down if the tensions die down. Recent talks by the Federal Reserve and the European Central Bank have left traders speculating mostly on momentum instead of regulatory movements.
This sentiment remains prevalent and is causing the bullion to continue to rally. In the 14-day gold prediction ending August 30, I Know First’s algorithm based on a stock prediction algorithm showed an impressive 100% accuracy rate, as seen in “Gold Outlook Based on Artificial Intelligence: Returns up to 4.75% in 14 Days.” After a month, I Know First’s average percent change came out to 3.48% with XAG as the top earner, bringing in an impressive 4.75% return to investors.
