Gold and oil up, stocks and the US Dollar down
Duncan Richardson, News Editor
27 Mar 2015, 12:14 p.m.
The gold price rose to a three and a half week high yesterday after Saudi airstrikes shocked investors’ confidence around the globe. The silver price rose by nearly 3% to a 5 week high before declining slightly before the end of trading.
Stock markets across the world fell and the oil price surged after Saudi Arabia and its Middle East allies began military action against neighbouring Yemen. The airstrikes are aimed at Iranian backed rebels who are believed to be destabilising the country. Although the offensive is being led by a Middle East coalition the Americans have been quick to provide logistical and intelligence support.
On the opposing side Iran and Russia are calling for an immediate cease fire. Worryingly this latest war runs the risk of pitting Russia against America once again. Let’s hope this latest intervention does not cause the complete destabilisation of Yemen and turn the country into a lawless state.
With Libya, Iraq and Afghanistan all worse off for military action, the outlook for Yemen does not look good.
The gold price reached $1,219.40 before falling to $1,195 per ounce at the close of U.S. trading.