Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Gold at the end of the geopolitical tension tunnel

By Grace Ormsby · January 09 2020
Reading:
egg

Invest

Gold at the end of the geopolitical tension tunnel

By Grace Ormsby
January 09 2020
Reading:
egg
Gold billon

Gold at the end of the geopolitical tension tunnel

author image
By Grace Ormsby · January 09 2020
Reading:
egg
Gold billon

The firing of missiles against US airbases has seen investors flocking to the safe haven of precious metal amid fears of further conflict.

In a blog post, the Perth Mint has noted the proximate cause of the latest rally to the price of gold as being “the sharp escalation in tensions between the United States and Iran, with the drone strike that killed Iranian military general Qassem Soleimaini”.

This in turn sparked a wave of safe haven buying, pushing the price of gold beyond $2,300 per troy ounce as Iran retaliated with a missile attack of its own against US troops.

While US President Donald Trump’s overnight decision not to escalate things further did cool things off, the price at 11AM, 9 January, is still sitting up at $2,266 per troy ounce.

The precious metals rally continues the strong upside move that the Perth Mint dates back to 2018’s fourth quarter, when a sharp decline in equity markets reignited demand for gold and other safe haven assets.

Advertisement
Advertisement

Gold’s value has skyrocketed more than 30 per cent in Australian dollar terms since.

The Perth Mint said it has seen investor appetite for precious metals grow firsthand, with the number of clients opening direct depository accounts more than doubling last year alone.

The jump in the price of gold has coincided with a jump in the price of a number of other key markets.

Bitcoin closed on 8 January at US$8,096.75 after jumping to a high of US$8,391.52 earlier in the day.

Crude oil peaked on 6 January at $63.27 before settling at $62.70 on 7 January.

Gold at the end of the geopolitical tension tunnel
Gold billon
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Nest Egg.

Read more

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.