Gold recovers from four-week low as investors head for safe-haven of gold
London — Gold recovered from a four-week low on Friday as investors sought a safe haven from geopolitical uncertainty caused by rising tensions between North Korea and the US. Bullion is often used as a refuge in times of political or economic turbulence while assets considered risky, such as stocks, are dumped. North Korea said on Friday it might test a hydrogen bomb in the Pacific after Trump vowed to destroy the country, with leader Kim Jong-un promising to make a "mentally deranged" Trump pay dearly for his threats. "Gold took quite a beating after the US Federal Reserve meeting but now the market got the news about North Korea and investors are moving back in gold," Danske Bank analyst Jens Pedersen said. Earlier this week, the US Fed signalled it was still on track to raise interest rates by the end of the year. This weighed on gold as tighter monetary policy raises the opportunity cost of holding non-yielding bullion. Spot gold was up 0.5% at $1,296.89 an ounce, as of 10.37am...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.