Gold Price Races Past $1,300 as world tensions grow.
2017-08-29T16:58:51+01:00 Aug. 29, 2017, 4:58 p.m. Daryl Jackson
The Gold price surged 6% in just three weeks to go over the $1,300 an ounce barrier yesterday, as investors looked to the ‘safe haven’ asset as uncertainty around the world grows. Gold was last above the $1,300 mark in November last year.
Why is this happening? Well, North Korea escalated tensions after firing a ballistic missile over northern Japan for the first time since 2009. People living nearby were told by the government to take cover and South Korea has threatened to ‘exterminate’ North Korean dictator Kim Jong-un if he continues to risk the safety of its population.
The US president, Donald Trump, said in a written statement that "threatening and destabilising actions" only increase North Korea's isolation in the region and around the world. He added that North Korea's actions show "contempt for its neighbours" and that "all option are on the table" for a US response.
Prime Minister Theresa May criticised missile launch, which she described as "reckless" and "illegal".
Gold investors have been citing fears that tensions between the US and North Korea will escalate and there are fears that there are a lot of factors in place that could tip the market of gold even further.
If the price continues to surge in the coming days and weeks, and tips over the $1,400 an ounce mark, it will be the first time since August 2013 that it has reached that level and some are predicting it could go even further than that.
Last year, economist James Rickards, claimed gold would soar in value in the coming years and cited cyber warfare as the number one reason people will pile into the commodity. He says the 21st century cyber age poses risks to digital money and wealth to all investors and savers.
He explains that gold will climb to $10,000 an ounce if confidence in currency collapses, which he believes could happen as a result of another financial crisis. That means we could continue to see a surge in investors rushing to buy the commodity in order to protect their wealth in times of global uncertainty.