LOS ANGELES, April 13, 2017 /PRNewswire/ -- Gold spot prices closed above $1,275 after early trading on April 12, a new high mark for 2017. The unexpected tension around Syria and North Korea appears to be the major source of the most recent gold rally.
On April 11, North Korea announced a retaliation with "tough counteraction" after the U.S. military strike team rerouted towards the small southeastern nation. North Korea's announcement prompted Japanese and U.S. naval ships to plan a joint show of force just off the coast of the Korean peninsula.
In the East, the United States launched an unexpected bombing campaign against Syria after a suspected governmental sarin gas attack killed more than 80 Syrian civilians. The bombing strike increased tensions between Moscow and Washington, with reports that Russia is considering activating a missile defense system to prevent further American intervention.
On April 10, Federal Reserve Chairwoman, Janet Yellen, stated that the United States would no longer pursue inflationary monetary policy. Her decision shows that short-term interest rates will rise.
According to Chris Mellor, executive director for Source (an ETF provider), investors are leaving equities and "aggressively" returning to gold, a historical "safe-haven" asset during times of political strife or rising inflation.
American Bullion's Co-Founder and President, Nevtan Akcora, also noticed the steady interest in gold. According to Akcora, more and more people are moving to gold and choosing American Bullion, recipient of the Bullion Dealer of the Year award.
Due to current unpleasant geopolitical and economic events, more Americans are fearing for their retirement future and turning to gold for protection. While inflation affects cash savings, real, physical gold has maintained its value throughout the ages and rose when cost of living increased.
American Bullion News: http://www.AmericanBullionNews.com
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SOURCE American Bullion, Inc.