Gold jumps on geopolitical tensions, surpassing key chart level... but that maybe only the beginning of the rally

Futures on the precious metal jumped 1.6 percent during the regular session, bringing their year-to-date gain to above 10 percent. The metal kept going higher in after-hours trading with the futures reaching an intraday high of 1,277.40, which was their highest level since Nov. 10.

nvestors have a lot to worry about: Last Thursday, the U.S. launched an airstrike on targets in Syria as a direct response to a recent alleged chemical attack by the Syrian government. The attack, meant to dissuade further use of the weapons, have chilled relations with the Russian government, an Assad ally.

U.S. Secretary of State Rex Tillerson is currently in Moscow to try and negotiate a path to ending the Syrian war.

On Tuesday, North Korean state media warned of a nuclear attack on the United States if provoked, and last Wednesday fired another ballistic missile into the sea following two earlier tests in March.

Investors also clamored into gold stocks. The VanEck Vectors Gold Miners ETF was most recently up 3 percent, on pace for its best daily performance since March 15, when it gained 7.69 percent.

Source: CNBC

Trader Bozhidar Arabadzhiev

Read more:

• Oil fundamental and inertia can push prices to new highs
• Goldman Sachs: “Gold is a better hedge than oil in current market conditions”
• Golden years for Gold
• The end-of-year gold rally continues at full speed
• Gold goes over $ 1,500, big players with estimates for the next year