Investors seek haven, pushing gold prices,… amid looming political and economic uncertainties

Investors seek haven, pushing gold prices,… amid looming political and economic uncertainties


A number of lingering uncertainties… namely
the unpredictable nature of the incoming Donald Trump administration and Brexit… have pushed
investors to seek safe haven,… eventually shooting up gold prices. Shin Se-min explains further. The price of gold, as a traditional safe haven
asset, has rallied 5-point-6 percent this year alone,… amid uncertainties both politcal
and economic… around the world. Concerns over the as-yet unclear policies
of the incoming Trump administration, as well as the UK’s pending divorce from the European
Union are two major drivers of the surge in gold. President-elect Trump will be sworn in as
the U.S. commander in chief on Friday. He’s made statements that have alarmed many
investors — for example, that “everything is under negotiation, inlcuding the one-China
policy,” which provoked a strong reaction from Beijing. Meanwhile,… UK Prime Minister Theresa May
will deliver a speech on Tuesday about the country’s plans to leave the EU,… which
is likely to confirm a hard Brexit. She’s expected to outline the UK’s plans to
pull out of the bloc’s single market… and regain full control of Britain’s borders. Observers say the market is doing a reality
check on the Trump euphoria,… with equity markets shifting sideways and the U.S. dollar
taking a more steady path. Bond yields down,… giving room for gold
to recover. As of early Tuesday, on the COMEX in New York,
gold was trading at around 12-hundred-13 dollars an ounce,… the highest level since late
November. Shin Se-min, Arirang News.

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