The price of gold has risen more than $20 since the first reports that a plane was shot down in Ukraine by a surface-to-air missile, killing 295 passengers and 15 crew.
gold intraday chart
Gold, bonds and the yen are the traditional safe havens in times of geopolitical fear. That’s exactly what we’re seeing now.
The initial reaction is always a flight to safe assets while the details are sorted out. The question traders are asking now is: What are the consequences? Does it put more pressure on Russia? Is that a good thing to end the separatist conflict? How will Malaysia, NATO and the US respond?
Normally, I always like to fade fear but there are some legitimate reasons to be fearful and stay in safe assets here.
