Gold Moves Higher On Iraq And Weaker Dollar

Published on 1 July 2014

Today’s AM fix was USD 1,325.75, EUR 968.48 and GBP 773.39 per ounce.
Yesterday’s AM fix was USD 1,313.00, EUR 961.62 and GBP 771.54 per ounce.

Gold climbed $12.40 or 0.94% yesterday to $1,328.50 per ounce and silver rose $0.10 or 0.48% to $21.09 per ounce.

Gold bullion is trading at a 3 month high, as investors warm to the precious metal again. Doubts over the U.S. economy's growth prospects persists with the USD index of currencies trading at a seven week low.

Recent Iraqi conflict is adding to apprehension that that country is again destabilising. Western powers seem reluctant or unable to intervene. Now with the news that the insurgents have announced the creation of a Caliph, it would seem that they are consolidating gains and formalising control.

This creates uncertainty as it adds a new and potentially dangerous dimension to the cauldron of instability that is the Middle East. As always it comes down to resources and who controls them.

The fact that the Iraqi government have taken receipt of surplus Russian fighter jets shows the very precarious state of their military power and potentially a shift in allegiances. It also shines a light on U.S. government's policy towards the stabilisation of Iraq, postconflict.

The situation in Ukraine is again destabilising. The cease fire has now expired and new the Ukrainian President Petro Poroshenko has vowed to to renew an offensive to "free our lands" by dislodging pro-Russian forces.

This conflict has been festering for far too long and the fact that Russia and Europe and her allies can not resolve it speaks volumes as to their geopolitical perspectives and positioning.

The bid for gold is strong, GoldCore are seeing a significant increase in demand forstorage accounts in Zurich and Singapore.