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Geopolitical problems in the Middle East provide support for gold

Author:

Gary Dugan

Keywords:

Gold

The likelihood of US intervention in the conflict in Syria following increasingly sharp allegations the country’s regime used chemical weapons adds further geopolitical risk into the financial markets.

Typically, geopolitical problems in the Middle East prompt oil prices to rise and the US dollar to strengthen. There are very few ways of hedging downside risk in portfolios from such geopolitical tension other than to buy gold.

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