Gold Prices Push Higher As Geopolitical Unrest Supports Safe-Haven Assets
Singapore (June 16) Gold prices are starting the week on a strong footing as renewed geopolitical risks create modest demand for safe-haven assets, said analysts.
To start the week, electronic trading of Comex August gold futures opened the Sunday North American evening/Monday Asian session at $1,276.80 an ounce, up from Friday’s pit close of $1,274.10 an ounce.
Since the open, the rally in gold prices has been fairly consistent; as of 8:53 p.m. EDT, August gold was trading at $1,279.30 an ounce, up $5.20 or 0.41% on the day
Electronic trading of Comex July silver futures opened Sunday evening/Monday morning at $19.670 an ounce, slightly up from Friday’s pit close of $19.655. Like the gold market, silver has also pushed higher since the open. As of 8:53 p.m. EDT, the contract was trading at $19.750 an ounce, up 9.5 cents or 0.48% on the day.
Tension in the Ukraine remains high as news agencies reported during the weekend that pro-Russian insurgents bought down a military transport plane and killed all 49 personnel on board. However, analysts point to increased tensions in Iraq as the latest catalyst in gold prices.
Last week, forces from the Islamic State of Iraq and Al-Sham overran towns and cities in Iraq as it advances on the capital city of Baghdad. Analysts have said this latest conflict could create instability in the Middle East, which would help gold as a safe-haven asset.