Gold jumped more than $ 10 as a result of terrorist attacks in France

16.11.2015

On Monday, the gold prices jumped sharply as markets resumed trading after the Friday series of suicide attacks and shootings in Paris which killed more than 130 people.

The attack sparked the launch of the French air strikes on Syrian positions of the Islamic State, which has assumed responsibility for the attacks.

Later on Monday, at the annual G20 summit in Turkey, the political leaders should discuss ways to escalate the war against terrorism and the fight against immigration crisis.

News forced investors to avoid riskier assets, such as stocks and higher-yielding currencies, and strive towards the traditional safe havens: the US dollar and gold.

During European morning trade, on the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose $ 11.00, or 1.02%, to $ 1091.90 per troy ounce. Earlier, the price jumped to $ 1097.40, the peak of November 6.

Growth is constrained because market players are preparing for the Fed interest rates rise next month.

Since mid-October, gold prices have lost 9%, as investors are waiting for a change in monetary policy of the United States in December.

The expectations of interest on loans growth had a negative impact on the precious metal because it cannot compete with the profitable assets in a period of growing rate.

This week, on Wednesday, investors will focus all the attention on the minutes of the last meeting of the Federal Reserve in search of fresh indication of the prospects for growth rates in December.

In addition, market participants will also focus on US data on inflation, building permits and industrial activity to get further clues on the strength of the economy.

Copper prices fell on Monday to the lowest since July 2009, as risk appetite fell sharply as a result of terrorist attacks in Paris, which caused the death of 132 people.

Prices of the red metal have fallen by more than 25% since May, amid evidence that China's economy is losing momentum, which increases fears that demand for industrial metals could be reduced.

The Asian country is the world's largest consumer of copper, with its share of almost 40% of world consumption last year.

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