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Welcome to 2020!

The first few days of 2020 have seen a dramatic effect on the price of gold, be that directly or in rates of exchange. Here are some stories that have caught our eye.

Gold price at 7-year high on Iran tension

US equity futures tumbled on Wednesday morning in response to Iran’s retaliation against US in rocket attacks on two Iraq bases. The S&P 500 index future lost almost 1.5%, breaking down a key support level at 3,200 points.

Read the full story here.

Iran Attack: It is Pound Sterling that is on the up against the Dollar, Euro and Yen

The British Pound is trading higher in midweek trade, with strong gains coming against the Japanese Yen, U.S. Dollar and Euro despite a flareup in geopolitical tensions that would typically be associated with declines for the UK currency.

Read the full story here.

Gold and Bitcoin prices surge! Should I buy at current levels?

Many investors compare returns from the stock market to alternative investments to see whether they are achieving an appropriate risk-adjusted return on their money. Think about it — if you are an income investor and could get 5% interest on a Cash ISA then why would you invest in a stock that has a dividend yield of 5%? The lower risk on the Cash ISA could cause some investors to reduce their stock holdings and increase cash balances instead.

Unfortunately, you cannot get 5% in a Cash ISA so it is worth looking at the returns from both gold and Bitcoin over the past few weeks to see whether there is merit in buying at current levels versus the stock market.

Read the full story here.