Gold rises on Iraq airstrike fears
Peter Walden, News Editor
8 Aug 2014, 10:05 a.m.
Gold is poised to post its strongest week in just under two months as the yellow metal climbed to a three week high. U.S. President Barack Obama has today approved airstrikes in Iraq in a bid to halt the advance on Irbil by the Islamic State (IS). Despite stressing that there was no intention of sending in ground troops, the President stated the action is intended to defend Americans and protect the Iraqi civilians under siege.
The decision comes after the IS group yesterday captured Qaraqosh, Iraq’s largest Christian town, after pushing back Kurdish troops. Qaraqosh is located approximately 19 miles south-east of Mosul, which was captured by IS in June as they push towards the Kurdish capital of Irbil.
Gold, a traditional safe-haven in times of geopolitical instability, has gained +2.64% (+£20.15/oz) to £784.14/oz since Tuesday whilst silver has gained +2.06% (+0.241/oz) to £11.951/oz.