Reasons to buy gold right now

From political turmoil in Washington to geopolitical tensions in the Middle East or the Korean Peninsula, this year has proven to be not quiet at all nor stable.
Despite the fact global markets hate uncertainty, especially coming from big economic powers such as the United States, Eurozone or China, there’s shine at the end of the tunnel, it’s gold!
On Tuesday, the precious metal climbed to its highest level since November 2016 on the back of rising geopolitical tensions between Qatar and key Arab nations, as well as the upcoming parliamentary elections in the United Kingdom, a new ECB monetary policy meeting and former FBI Director James Comey’s testimony to the Senate intelligence committee.
President Donald Trump said this blockage was a result of his visit to Saudi Arabia, where leaders agreed to take a hard line on terrorist financial supporters. Qatar is now facing potential economic risks that would affect key industries such as oil production or transport.
All these events boosted demand for safe-haven assets, pushing gold for August delivery more than one percent in the session to trade around $1,296.60 a troy ounce.
Nine countries have suspended diplomatic and commercial ties with Qatar after accusing the Arab nation of supporting terrorist organizations to promote instability in the Middle East region.
A weaker US dollar is also playing a huge role on the gold rally. The US dollar index, which gauges the American currency against a basket of six major rivals, was down by 0.27 percent at 96.49 in early Asian hours on Wednesday, extending previous session losses.
The precious metal is denominated in US dollars and therefore, a stronger currency makes it less attractive for investors holding foreign currency.
Another factor playing on the bullish side for gold is downbeat economic data in the United States. Disappointing employment data for May increased concerns ahead of the June 13-14 monetary policy meeting of the Federal Reserve. If the US regulator decides not to proceed with a rate hike this month, gold is expected to extend its rally further.
Fort Financial Services