Gold Prices Shoot Higher on Increased Risk

Gold prices have shot higher over the last 24 hours on the back of increase in risk and uncertainty on a global scale during this period. It has been generally the case of a weak or a strong dollar that had been holding back the gold prices and forcing it to trade within a large range but over the past 24 hours, we are seeing a large demand for gold come in due to the increase in risk. It is generally believed that during times of heightened risk, there is a demand for gold for its status as a safe haven and thats what we have been seeing.

Gold Prices Higher

The reason for the increase in risk is due to the fact that the US has announced tariffs on the import of many Chinese goods and this could mark the beginning of a global trade war. China has also retaliated to this move, but on a lesser scale and we have both the countries warning that more measures are to follow. We have also been seeing the Eurozone leaders joining in on the chorus to retaliate if the US pursues the tariff plan against them as well and all of this has increased the uncertainty and made the situation around the globe very fluid. This has led to a crash in the stock markets as we have been seeing the funds being pulled out of the stock markets and pushed into the gold markets. This is likely to continue in the short term as the market tries to deal with the changed situation.

The oil prices have been comparatively quiet during this period as the investors and traders figure out how to deal with the scenario and also wait and see for further developments in this space before jumping in or dumping of their trades.

Silver prices have been pretty stable and this has been the case over the last several weeks as the silver market seems to be getting very little attention in the recent times. The market has been slow since the beginning of the year and this is a sign of weakness as well.