Gold prices touched the highest settlement in the last 11 weeks on Aug 21. Prices of the yellow metal also reached this year’s best intraday high, rising above $1300 an ounce on Friday. Gold’s rise was triggered by uncertainty in both domestic and global markets. Tensions between the U.S. and North Korea were rekindled over the weekend, which also heightened investors’ interest in safe havens such as precious metals.
Gold lost some of its luster in 2016 after a tumultuous 2015, but has managed to maintain its bull run this year. With gold prices shining, this looks like a good time to invest in mutual funds which have significant exposure to the precious metals sector.
Losses on Friday Despite Domestic, Foreign Concerns
Gold prices reached an intraday high level of $1,306.90 an ounce on Friday, its best since last November, following concerns over President Trump’s administration and a terrorist attack in Barcelona. The growing backlash against the President following his remarks on the Charlottesville incident has raised doubts over his abilities to implement his pro-growth economic policies. Also, the departure of chief strategist Steve Bannon from the White House exposed a lot of difference in the Trump administration.
Additionally, the terror attack in Barcelona during which 14 people were killed and about 130 were injured weighed on investor sentiment. Tensions in domestic and global markets boosted gold prices during the day, but gold lost $15 to settle at $1,291.60 an ounce on Friday from its intraday high.
Gold Rebounds on Monday to Strike 11-Week High
However, rising geopolitical tensions between the U.S. and North Korea, led gold prices to increase by $5.10 on Monday, settling at $1,296.70 an ounce, reaching an 11-week high level of $1,299.70 an ounce during the day.
Fresh concerns were raised with the start of joint military exercises between the U.S. and South Korea. Officials from North Korea criticized this move, terming it as “reckless behavior” and blamed Washington for heightening “military tension” in the Korean peninsula.
