At the opening of Asian markets today (4/1), the price of gold gained as investors' view of the increase in geopolitical tension after Saudi Arabia against Iran broke off diplomatic relations.
Spot gold rose 12:29 percent to the US dollar 1,064.40 per troy ounce. Similarly, delivery next month gold on the Comex stronger then 0.25 per cent to USD 1,062.90 per troy ounce. Precious metals prices rose after the announcement of the rope rupture of diplomatic relations Saudi Arabia against Iran posed via Twitter Saudi Foreign Ministry official, "Foreign Minister Adel al-Jubeir of the Saudi Kingdom announced a severance of diplomatic relations on Iran."
The influence of the political tensions caused bullion rallied due to the action of shifting investment towards the save-haven assets and the exclusion of the strengthening US dollar against six other major currencies. The US Dollar Index is still at the high level of 98.62, only slightly dimmed 0:07 percent at the opening of the market on the first day of the new year.
Many people predict gold will be a difficult year in 2016. After an increase in interest rates for the first time in December last year, the Fed is expected to undertake a gradual increase in the Federal Funds Rate during the year. Higher interest rates will weigh on demand non-interest assets such as gold, while on the other hand give support to the US dollar.
Spot gold rose 12:29 percent to the US dollar 1,064.40 per troy ounce. Similarly, delivery next month gold on the Comex stronger then 0.25 per cent to USD 1,062.90 per troy ounce. Precious metals prices rose after the announcement of the rope rupture of diplomatic relations Saudi Arabia against Iran posed via Twitter Saudi Foreign Ministry official, "Foreign Minister Adel al-Jubeir of the Saudi Kingdom announced a severance of diplomatic relations on Iran."
The influence of the political tensions caused bullion rallied due to the action of shifting investment towards the save-haven assets and the exclusion of the strengthening US dollar against six other major currencies. The US Dollar Index is still at the high level of 98.62, only slightly dimmed 0:07 percent at the opening of the market on the first day of the new year.
Many people predict gold will be a difficult year in 2016. After an increase in interest rates for the first time in December last year, the Fed is expected to undertake a gradual increase in the Federal Funds Rate during the year. Higher interest rates will weigh on demand non-interest assets such as gold, while on the other hand give support to the US dollar.
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