Proactive Investors - Run By Investors For Investors

Gold hits $1,370 amid Mideast tensions

Gold hits $1,370 amid Mideast tensions

Gold prices surged today, driven by safe haven demand spurred by the continuing unrest in the Middle East and UK consumer and retail prices data.

A number of Middle Eastern countries including Yemen and Bahrain got hit by a new wave of riots early this week with the protesters looking to replicate the success of the demonstrations that have rocked Egypt in the past few weeks, leading to the resignation of long-time president Hosni Mubarak.

Gold is normally used by traders for wealth protection during times of political and economic uncertainty.

The Office for National Statistics reported today that consumer price inflation in the UK climbed from 3.7% in December to 4% in January, upping pressure on the Bank of England to hike interest rates and increasing gold’s appeal as an inflation hedge.

Gold last traded at US$1,372/oz.

Silver and platinum rose US$30.81/oz and US$1,834/oz.

Gold producers African Barrick Gold (LON:ABG) and Randgold Resources (LON:RRS) declined marginally, as did platinum Lonmin (LON:LMI).

Silver miner Fresnillo (LON:FRES) retreated 2.8%.

In the FTSE 250, Petropavlovsk (LON:POG) and Aquarius Platinum (LON:AQP) lost 2.2% and 1.5% respectively.

Hochschild Mining (LON:HOC) outperformed the sector, rallying 3%.

Gold developer and producer with assets in West Africa Cluff Gold (LON:CLF) was among the top risers in the sector with a 6% gain.

Register here to be notified of future GOLD Company articles
View full GOLD profile

GOLD Timeline

January 04 2012

Related Articles

June 24 2015
KEFI Minerals’ widely anticipated definitive feasibility study of its flagship Tulu Kapi project in Ethiopia burnishes its potential to be a low cost mine.
November 02 2015
Ariana, led by Kerim Sener, is now transitioning into a gold producer
July 28 2015
“We are targeting the completion of the processing plant in September and the smelter in October.”

© Proactive Investors 2015

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.