Gold hits six-year high as geopolitical tensions bubble – business live
Rolling coverage of the latest economic and financial news
- Introduction: Gold leaps to six-year high
- Iranian tensions and trade war fears worry investors
- Dollar under pressure after Trump attacks Fed
The gold price has jumped by over 10% this month, rising from $1,288/ounce at the end of May to $1,426 this morning.
Alfonso Esparza, a senior market analyst at OANDA, believes bullion could surge higher, if the US and China can’t reach a trade deal at the G20 meeting.
“The main event this week will be the sidebar meeting between Trump and Xi, which could stop the current gold rally with a productive sit-down that ends up in a trade agreement,”
“The flip side could boost gold prices even further as the Trump administration has shown that it could turn from friendly to aggressive in a heartbeat further fuelling investor’s demand for a safe haven.”
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Related: Iran says US sanctions on supreme leader mean ‘permanent closure’ of diplomacy
President Trump has just signed an executive order to deny Iran’s Supreme Leader and his associates access to key financial resources and support. pic.twitter.com/14qE9iUe61
Investors are reluctant to move their capital elsewhere in the middle of a worsening US-Iran thunderstorm and ahead of the G20 summit.
Despite a Federal Reserve that doesn’t know what it is doing – raised rates far too fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in US history…
….Think of what it could have been if the Fed had gotten it right. Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s. Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!