Friday, 11th August 2006 (3472 views)

There was a brief hike in the price of gold directly after the terrorist plot against UK and US airlines flying out of Heathrow was announced yesterday (Thursday, August 10th).

However, according to market analysts and traders, the price hike was something of a white elephant as soon after the sharp rise above $650 an ounce, traders saw the price level off and begin to return to its original price.

Terrorist threats and other major political and social disturbances quite often have an immediate effect on the trading price of gold and other precious metals as investors flock to them as safe haven investments.

Frequently though, the hikes are short lived and this appears to have been the case with yesterday's price movements as gold swiftly move back below $660 an ounce to settle a little over $650 by the close of trading in New York on Thursday.

"The move appears half-hearted and sellers have already appeared amongst our clientele," Simon Denham of Capital Spreads told Life Style Extra.

 

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