As the stock markets are known to be sensitive to social and economic happenings, spot gold rose tremendously to $830.05 an ounce, the highest since November 26, after the assassination of Benazir Bhutto. Gold prices behaved erratic with the slipping of the US dollar and surging political tension.
According to James Moore, a precious metals analyst at TheBullionDesk.com., “The markets are very thin and people are jittery. Any such news is going to create a larger reaction than you would normally expect to see”.
US gold futures for February delivery reached a one-month high of $835.50/oz on the COMEX metals division of the New York Mercantile Exchange, before settling at $831.80 an ounce, up $2.3, or 0.3%.