Forex
Gold Rises to Seven Year High Amid Rising Uncertainty
- Gold Rises to Seven Year High Amid Rising Uncertainty
Gold, the most reliable haven asset, rose to a seven-year high on Thursday after President Trump sanctioned Russian leading oil company suspected to have a trading connection with Venezuelan state-owned oil company.
The sanction coupled with China coronavirus outbreak increased global uncertainty as investors fear a further decline in the economic outlook.
Gold rose to a seven-year high of $1622 per ounce on Thursday after seven months of testing the $1617 resistance level established in 2013.
“Safe-haven buying has been triggered by this virus in China and we’re seeing a big sell-off in equity markets … It’s mostly panic, the markets are looking at the prospect of the Chinese economy slowing down,” said Edward Meir, analyst at ED&F Man Capital Markets. “We could hit the recent highs above $1,600s if this thing deteriorates.”