In the past week, North Korea has tried to flex its muscles and President Donald Trump has responded in the same way. The instabilities of North Korea and the uncertainty about how President Trump will respond to the actions of North Korea’s President Kim Jong-un is fueling the fire about the world’s future.
Investors Are Scrambling for Stability
Gold has long been an investment seen as stable when everything else in the world is in turmoil. Investors are scrambling now to find ways to remain stable no matter what happens with the situation coming out of North Korea.
In some markets, including India, spot gold prices have jumped to the highest level they have been in five months. In India, dealers have fluctuated between adding a $1 premium to gold prices over the official domestic price and offering a $1 discount over the same gold prices. This fluctuation doesn’t seem to show signs of stopping as the world watches the geopolitical scene.
Other Events Impacting Asian Stocks
Other world events and news are also impacting Asian stocks and investments, including gold prices. Toshiba is having troubles as of late. This is playing into investors’ decisions to jump on the gold bandwagon.
This past week, gold saw a $4.08 per ounce jump. This hike is one sure sign that nervous investors are taking note of uncertain markets being impacted by financial troubles of companies that have always been considered big market players.
The United States Is Still Impacting Gold Prices
Recently, President Trump met with Chinese leader Xi Jingping in an effort to smooth relations between the two powerful countries. The meeting is said to have been a success after news that President Trump has recanted his earlier claims that China was manipulating currency. This meeting and its success are expected to have a positive impact on gold prices.
While gold prices across the world continue to fluctuate, there is a noticeable uptick across long-term charts. One factor helping this to occur is that the strength of the U.S. dollar has recently decreased. This isn’t expected to continue, but it is pushing the price of gold up, which is good news for current investors who have holdings in the precious metal.
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