Gold hits a 1-month high

Seth Archer

Jun 6, 2017, 18:34 IST

Gold is rising, and near its highest level for the year.

The price of gold is currently at $1291.20, higher than it has been since November. The commodity is up 2.5% over the last year and 4.2% over the last three months.

Gold is often thought of as a safe-haven asset, and prices often rise when amid uncertainty in the world. Other safe haven investments, like Treasurys, are also rising on Tuesday. Meanwhile, stock futures point to a lower market open.

The geopolitical climate has hit a bit of a rough patch in the last week or so. On Monday, several Gulf States cut diplomatic ties with neighboring Qatar in response to "gross violations committed by authorities in Qatar over the past years."

Last week, after his first trip abroad, President Trump announced he would be pulling the US out of the Paris Climate Accord, which led to a lot of criticism from world leaders.

And, after a terrorist attack on London Bridge, polls suggest the Thursday general election in the UK will be closer than Prime Minister Theresa May had hoped. Polls are now suggesting the possibility of a hung parliament.

None of these events can be tied directly to the rising gold prices, but global anxieties are growing and some investors might see gold as an attractive place to park their money until things calm down.