Gold up as dollar slides on Middle East tensions
Duncan Richardson, News Editor
4 Jan 2016, 4:36 p.m.
The gold price jumped 1% as investors turned to the yellow metal for protection against increased geopolitical tension in the Middle East.
Relations between the regions two powerhouses, Iran and Saudi Arabia, is deteriorating after the Saudi government confirmed it had executed cleric Nimr al-Nimr. In retaliation a mob torched the Saudi Embassy and consulate in Tehran.
Saudi Arabia’s allies Bahrain and Sudan have also severed relations with Iran as geopolitical tension escalates across the region.
Historically, traders turn to gold during times of geopolitical and financial instability. European shares have fallen hard with the FTSE 100 falling 2.4% and the German Dax tumbling over 4%. Unsurprising the oil price risen over 3% as two the world’s largest oil producers go head to head.
The gold price is currently trading at £731.51 per ounce, silver £9.62 per ounce, platinum £604.83 per ounce and palladium £375.69 per ounce.