Business

Gold hits five-month high riding on troubled waters

17 Apr 2017 | By Anish Chakraborty
Gold will stay bullish until global tensions subside

Gold soared to a five-month high as investors are veering towards assets that will not dwindle in face of rising global tensions.

Investors are twitchy at the moment with the situation that is going on in North Korea and the stance taken on the same by Trump.

Gold is expected to remain bullish until several factors such as the following, play out their course.

In context: Gold will stay bullish until global tensions subside

17 Apr 2017Gold hits five-month high riding on troubled waters

HikeRising exponentially on the price chart

In the past week, the yellow metal saw a hike of 2.5% marking its biggest gain since June 2016 and the US gold futures showed a 04% upward climb.

SPDR Gold Shares ETF, which is the world's largest gold-backed exchange traded fund, noted that its current holdings saw a rise of more than six tonnes, marking its biggest monthly inflow on Thursday.

Love Business news?
Stay updated with the latest happenings.
Kim Jong Un and North Korea's missile test

Kim Jong UnKim Jong Un and North Korea's missile test

Kim Jong Un, himself is akin to a loose cannon and when he threatens the world saying that the country which has been barely struggling to hold itself together, is ready for nuclear strike and has the USA on its radar, it is needless to ask why investors are panicking.

Current reports are speaking of an uneasy calm in Pyongyang, despite failed missile launch.

TrumpTrump administration is still grasping straws

Trump may be a businessman but the nitty-gritty of global politics maybe a tad bit tough for him to handle and investors are really not betting on him to perform any miracle anytime soon.

The buzz on the street is that USA along with its allies and China are now working on a suitable response to Kim Jong Un's failed missile test.

ElectionFrance's upcoming presidential election

Brexit getting passed, Trump winning the presidential election - all these unforeseeable outcomes have now made investors wary against predictions.

France's first leg of presidential election kick-starts on April 23. Instead of betting on the projections to go in their favour, investors are stockpiling their safe haven assets and sitting this one out, and are content watching the action from the bench.

BullishPossible outcomes and predictions

The market is going to be nervous and will rather wait and watch than make any risky bets. A cautious stance and stockpiling on assets will keep gold giving a bullish outlook until uncertainties start clearing up.

According to Reuters analyst, we may end up seeing a rise of $1,303 per ounce as it has already broken above the resistance set at $1,282.

Love Business news?
Stay updated with the latest happenings.

Largest true gold nugget

The largest ever true gold nugget was found in 1869 at Moliagul in Australia and was nicknamed "Welcome Stranger" which is truly a remarkable feat considering a five carat diamond is easier to find compared to a one-ounce nugget of true gold.