Gold ready to charge on Geopolitical Tensions

The gold price received a huge boost in the last few days on the back of a terrorist attack in Spain as well as fears that US President Donald trump will be unable to push through any of his planned economic policies.

A terrorist attack in Barcelona earlier today claimed the lives of 13 people and injured one hundred more saw investors piling into gold as a safe haven asset.

Two members of Donald Trump’s business advisory council quit this week over comments the US president made after the protests in Virginia, which left one person dead.

It forced Trump to shut down the project altogether, which caused alarm amongst Republican senators with some of them now refusing to back any future policies. This is bad news for Trump as he now lacks the numbers to push through any tax reforms or increased spending on infrustructure.

“This week’s events may prove to be a defining moment for President Trump, as events in Charlottesville and what seems to be a widening division between the White House and the U.S. business community puts a question mark over the President’s future,” Neil MacKinnon, an economist at VTB Capital in London, said in a report on Friday.

With the threat of a nuclear strike from North Korea, Trumps failed policies and the threat of further terrorist attacks, some are predicting that gold could hit its highest level since 2011 which is around $1,900

“It is the combination of all these factors that is supportive of safe-haven buying of gold .There is always the possibility of a repeat of the inflows of speculative money that drove prices up $500 in just nine months in 2011,”said George Milling-Stanley, head of gold investment strategy at State Street Global Advisors.

“When that happens, it would be possible to see prices approach the highs of 2011, and perhaps even surpass them.” He added.

This article was prepared by FIBO Group analyst Andrew Masters.