Friday, 14th July 2006 (3390 views)

The price of gold broke through the $650 an ounce barrier on the afternoon of Wednesday, 13th July amid rising global tension.

Investors have been seeking the reassurance of solid gold prices following the bomb blasts on the Mumbai train network earlier this week, which have killed around 200 people, and fears over rising oil prices and political tensions in the Middle East.

Diplomatic unrest has been reported at intermittent intervals lately, as North Korea and Iran continue to stand firm with their alleged nuclear development programmes against political pressures from the West.

For stocks traders, gold frequently provides a convenient and solid hedge against rising inflation or stock market uncertainties.

The price of gold, as well as other precious metals such as silver and platinum, will generally rise if currencies or other stocks decline in value.

The current gold price is at a seven-week high.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.