Gold Prices Edge Higher ; South Korea Turmoil Spurs Safe Haven Demand
Gold prices rose marginally Wednesday as political turmoil in South Korea spurred some safe haven demand, although anticipation of more cues on US interest rates limited gains.
At 09:20 ET (14:20 GMT), spot gold rose 0.1% to $2,646.58 an ounce, while gold futures expiring in February rose 0.1% to $2,669.20 an ounce.
South Korea in focus after failed martial law declaration
South Korea President Yoon Suk-Yeol declared martial law on Tuesday, although he swiftly rescinded the move after it was heavily opposed by the Parliament and citizens.
The Parliament entirely voted against martial law, while South Korea’s opposition party also called for Yoon’s impeachment, putting the country into its worst political crisis since the 1980s.
Political uncertainty in the country undermined investor sentiment across Asia, given that South Korea is regarded as a pillar for the East Asian economy. This spurred some safe haven demand for gold.
Increased tensions between Israel and Lebanon also spurred some safe haven buying, after Israel threatened to hold Lebanon’s government accountable for a collapse in its ceasefire with Hezbollah. Both Israel and the militant group launched strikes against each other over the past week, violating a U.S.-brokered truce.
Source : Investing.com
