Gold Prices See Seventh Day Of Gains After Terrorist Attack In London
By: GoldCore
GoldSeek.com
Thursday, 23 March 2017
– Gold prices higher seven days in row – best gains since Brexit
– Gold spikes to three week high after terrorist attack in London
– Global stocks fell yesterday after attack in London
– Stocks resilient today and start day flat
– Gold rallies 4.1% in recent days as stock prices falter
– Sterling fell yesterday but flat today
– Risk of terrorist ‘spectacular’ shows importance of gold
– Trump faces big test today and failure may impact stocks
– Silver rose 0.3% yesterday and is another 0.5% higher today to $17.69 per ounce
– Uncertainty to provide support for gold and should test resistance at $1,250 per ounce and above that at $1,300 per ounce
Gold prices reached a 3-week high yesterday after the terrorist attack in London pushed gold to $1,251.30 per ounce – the highest it’s been since February 28.
Gold prices have risen over 4% in the last seven days as global equities slumped and risk aversion returned to markets. Gold has consolidated on the gains of the last seven sessions today and prices are marginally higher just above $1,250 per ounce.
London’s worst attack in more than a decade left five people dead, including the assailant and the police officer he stabbed, and at least 40 injured.
The history of these attacks, including those in France, Germany and Belgium last year as well those in Madrid and London more than 10 years ago, show there was little impact on economic confidence or financial markets. However, these attacks, despite being tragic were relatively small in scale and not of the magnitude of the September 11 attacks in New York.
The concern is that with economies fragile and markets looking very over valued, a spate of new terror attacks or indeed what is termed a terrorist “spectacular” akin to ‘911’ or simulated attacks across the western world as warned of by Isis recruits, could be damaging.
Markets are now also getting jittery about President Trump’s ability to push through policies that may benefit the U.S. economy. This is creating doubts on the so-called reflation trade that has seen stocks become “irrationally exuberant” in recent weeks.
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