Korean Conflict Boosted Gold Prices

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Etoro

Yesterday saw North and South Korea exchanging a volley of shells near to their disputed border territories and as any good skirmish does, the Korean conflict boosted gold prices at online brokers such as eToro. However, the civil unrest in Korea only managed to create a temporary spike as the strengthening dollar quickly suppressed the rising price of gold.

You may be wondering how an outbreak of military conflict can affect the price of gold, there certainly aren’t any gold plated tanks that I know of! Once news of the conflict in Korea had made its way across Asia risk aversion tactics were quickly employed. These tactics included selling local currencies against the US dollar, a popular safe haven for investors and in turn pushing up the price of gold.

This morning traders saw the spot price of gold peaking at $1,369.90 a troy ounce but by lunchtime it had fallen to $1,358.30 as the dollar continued to make progress across the board. It isn’t just gold that’s taken a hit today, other precious metals also fell. The spot price of silver dropped by 78 cents to $27.09 an ounce, platinum prices also slid by $26 to $1,635 an ounce and palladium dropped by $32 to $661 an ounce during this morning’s trading sessions.

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