In times of significant geopolitical uncertainty, gold looks like a safe haven.
Is there going to be a significant escalation of the war in Syria, now that President Trump is threatening missile strikes?
Not if the gold price is anything to go by.
Gold is famously correlated inversely to the dollar and since the dollar has been weak of late the price is relatively strong, at just over US$1,340 per ounce.
In times of significant geopolitical uncertainty, the so-called “safe haven” attractions of gold tend to override the influence of the dollar in pricing, as investors seek shelter in the world’s oldest store of wealth.
There’s no sign of this at the moment, though, although expect an immediate spike if President Trump does press the button...