The Rapid Gold Prices Rise Has Slowed
Gold prices slowed their rapid growth this week, falling as investors see prices consolidate. The commodity came in at $1,281 per ounce after a near-one-percent dip following strong gains that pushed gold’s value to new highs in 2017.
The precious metal has been the beneficiary of political instability across the globe that has been agitated in recent weeks due to failed diplomatic actions, heightened geopolitical tensions, and worsening conflict in the Middle East.
The gold surge was primarily propelled by U.S. military action in Syria and increased tension with North Korea. For the first time since the Syrian Civil War began, the U.S. directly bombed a government target, escalating its role in the conflict. Before, strikes had been limited to extremist and ISIS targets primarily, though the U.S. had been providing tacit support for rebel forces seeking to depose the dictatorial Syrian government and its leader Bashar al-Assad.
The airstrike came as a direct response to the alleged use of chemical weaponry by the Assad regime. Russian and Syrian government officials, however, claim that the sarin gas that was unleashed upon civilians did not originate from the Syrian government.
As the Syrian civil war continues to deteriorate, the United States has also stepped up its aggressive stance toward North Korea, claiming that the U.S. would be willing to attack the nuclear-armed nation. North Korea is often seen as a rogue state, and has been accused of multiple atrocities.
The U.S. administration has demanded that China take on a more prominent role in dealing with North Korea.
The various theaters of political upheaval have caused many investors to flock to gold, seeking some solace on the market in these volatile times. Gold prices fell on Wednesday, however, as a result of the recent speedy surge that the precious metal witnessed due to the multiple geopolitical events occurring in April.