Yemen air strikes boost gold prices
28 March 2015 - 12:04AM
Property
Photo: Investing in Gold
Air strikes on Yemen this week have boosted the
value of precious metals, as gold enjoyed its longest run of rises
in over two years.Saudi Arabia and its allies began to bomb targets
in Yemen on Thursday 26th March, an attack that has continued
today. In times of political tensions and conflict, investors
traditionally turn to safe haven assets to shelter from the
uncertain equity valuations. As a result, oil prices have
risen to their highest level in a forightnight, while gold has
risen 4.7 per cent in seven straight sessions of gains, reports
Bloomberg, its longest run of increases since August 2012.The rise
arrives as the precious metal is already enjoying an uplift from
the Federal Reserve’s recent decision not to raise interest rates
immediately, which has helped to weaken the dollar and, as a
result, strengthen bullion."Concern about a growing conflagration
on the Saudi peninsula drove gold’s haven-premium higher," Tai
Wong, the director of commodity products trading at BMO Capital
Markets Corp, told Bloomberg. "Continuing weakness in the dollar is
helping gold."Silver futures for May delivery also rose 0.8 per
cent to $17.14 an ounce on the Comex, a positive rebound following
a 13 per cent decline in the past year.
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