Aug. 10 has now seen both gold and silver climb solidly for two straight days, taking the precious metals from $1250 to $1288 on the gold side, and $16.50 to $17.33 on the silver side.
These moves have been precipitated by the growing volatility of geo-political events, especially in North Korea, and are quickly changing the dynamic for the precious metals back to being a primary safe haven asset.
Gold rose to the highest in nearly two months on Wednesday, after North Korea said it is considering an attack on the U.S. Pacific territory of Guam and U.S. President Donald Trump boasted of the strength of the American nuclear arsenal.
Bullion was on track for its biggest one-day rise in nearly three months.
The tensions rattled global markets, sending investors out of equities and into the safety of the Swiss franc, government debt and gold. The VIX “fear gauge” of expected volatility on the S&P 500 hit its highest in more than a month. – Reuters
Source: The Daily Economist