Every gold follower soon learns that geopolitical instabilities are a big driver of gold prices. When there isn’t much turmoil in the big world – meaning the physical world, not the paper-pushing financial markets – investors flock to safe havens for security. And that’s exactly what we’re seeing right now in gold. Uncertainty created by open conflict between the US and Iran caught the eye of investors, who apparently managed to look up from their pip-screens long enough to realize there is an actual shooting conflict going on.
Last week Iran not only shot down a US drone, they admitted they did it. And gold went POP! International gold prices broke through 1400 USD this morning and there are signs it may stay there, at least for the present. You can read more about the Iran situation from the market’s point of view in today’s featured article.
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