“An escalation in geopolitical risks, especially over short periods, could send investors into gold and the USD simultaneously,” James Steel, chief precious metals analyst at HSBC Securities (USA) Inc., said in a note Friday. “This is precisely the climate that benefits gold, even if the U.S. dollar also becomes highly sought.”
(Jan 13): A volatile week ended in favor of gold investors, with geopolitical tensions reigniting haven demand for the metal.
Hedge funds and other large speculators boosted their their bullish bets on bullion to the highest since September. While prices hit the highest in six years earlier in the week, the rally stalled as the risk of war between Iran and the U.S. faded. On Friday, President Trump announced sanctions against the Islamic republic, reminding investors the conflict is far from over.
