Wednesday, 21st June 2006 (4740 views)

Concern amongst investors that North Korea could be close to testing a ballistic missile has led to a small surge on the price of gold on world markets.

Although the gains are less than one per cent and range from market to market, political unrest has historically led to gold prices soaring. Following the September 11 terrorist attacks in 2001, gold prices surged by over five per cent.

The precious metal is often seen as a 'safe bet' in turbulent times and if the preliminary reports of missile tests and political tensions are accurate, gold could see further gains in the short term.

A rise of around 1.5 per cent came in early March after reports from North Korea suggested short-range missile testing had taken place near its Chinese border.

Many of the world's larger nations, including the US and China, had led calls for North Korea to call of tests of its missile capabilities, fuelling rumours of political tension and pushing investors towards gold.

 

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