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Friday, July 14, 2006

In Gold we trust

By Yaser Anwar, CSC of Equity Investment Ideas

Israel's bombing Lebanon, North Korea's testing missiles, India's trains are exploding and Iran continues to build its nuclear program. Investors have reason to be concerned. As a result, investors are flocking to gold for a safe haven from geopolitical tensions.

The price of gold has risen for the past three days, surging to a high of around $656 in New York, says

"There are some geopolitical factors pushing gold higher," John Meyer, an analyst at Numis Securities, tells Bloomberg. "The bombing of the airport in Beirut and the problems North Korea are all adding to increased levels of uncertainties."

After North Korea tested seven missiles, gold jumped 2.2 percent, according to Bloomberg data. In comparison, bullion surged 5.3 percent on 9/11, says Bloomberg.

"Gold is trading at a stronger pace than expected," said Yukari Nozaki, an analysts at commodities futures broker Ace Koeki Co., to Bloomberg. "There could be some instances of profit taking, but gold will rise again."

Source: Money news

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