Gold perks up as geopolitical tensions in Europe resurface

MarketWatch/Myra P. Saefong & Mark DeCambre/10-19-17

Gold prices traded higher on Thursday, on track to snap a three-session skid as political drama in the eurozone rattled investor confidence and the U.S. dollar and equities declined, lifting investment demand for the haven asset.

…“With stocks and the dollar down while bond prices rise, gold is just sticking to the script” with Thursday’s climb, Adrian Ash, head of research at BullionVault, told MarketWatch.

“Record-low volatility and record-high equities should make buying a little gold as insurance all the more urgent, but consensus at this week’s [London Bullion Market Association] conference in Barcelona saw weak investment demand continuing until the S&P’s bull market fails, not before,” he said.

PG View: Your “insurance” is going to be considerably more expensive, if you wait until the bull market in stocks fails first. Prudent investors are gradually taking profits in shares and moving some of those proceeds to gold now.

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