Geopolitical Worries Rise Demand For Gold

Gold futures traded above $1,300 level on Friday for the first time in 2017. Safe-haven demand was sparked due to terrorist attack in Barcelona and political uncertainty in the United States.

Meanwhile, September silver surged by 0.1%, at $17.075 an ounce.

Futures for delivery in December grew as much as 1.1 percent to $1,306.90 an ounce on the Comex, and traded $1,298.20 in New York.

Gold and Trump

Gold has strengthened about 13 percent this year as Trump failed to ramp up U.S. growth by cutting taxes and boosting infrastructure spending.

“The terror attacks in Spain are reminding investors of the need to hedge their portfolios against geopolitical risk. Trump’s domestic behavior is making investors nervous about how he will handle delicate foreign issues, even though talk of firing nuclear missiles on North Korea has eased,” said Maxwell Gold, director of investment strategy at ETF Securities.

US Dollar remains lower amid terrorist attack in Spain

The dollar stayed broadly lower against other major currencies on Friday, as investors remained cautious following a terrorist attack in Spain. The yen was the major mover among developed world currencies, it rose nearly 1 percent against the dollar.

Demand for safe-haven currencies rose after the horrific van attack in Barcelona which killed at least 14 people and left many others injured.

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