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Possible conflict boosts gold
Published on 09.08.2017 13:13

The gold price is on the rise today after comments by US president Donald `Trump about North Korea which increased the chances of a military conflict.

At 10.57am(GMT) the gold price was trading at $1,268 up from $1,261 in yesterdays trading session.

In a no holds barred speech, President Trump said that North Kore would face “Fire and Fury” like the world has never seen if it continued to develop nuclear weapons and North Korea responded by threatening to bomb the US Pacific territory of Guam

"Trump's comments about North Korea have created nervousness and the fear is if the President really means what he said: fire and fury. The typical text book trade is that investors rush for safe havens." said Naeem Aslam, chief market analyst at Think Markets in London.

Gold is now expected to remain well supported until the situation between the US and North Korea becomes clear and gold is expected to attract investors looking for a safehaven for the foreseeable future

"We likely will continue to see more tension in the region, this in turn suggests that at least for the balance of this week, we likely should be long gold as the heated rhetoric could raise the odds of military action." Noted INTL FCStone analyst, Edward Meir.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

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