gold

Rising geopolitical tensions after threats by Iran to
block the Strait of Hormuz, a key oil trade route, should ultimately be
gold-positive, despite having failed to spur a lift in prices so far, says HSBC
analyst James Steel. While the news has been overshadowed by end-of-year
book-squaring and liquidity fears, market participants say tensions in the
oil-producing region have helped put a floor under crude prices, with which
gold shares a positive correlation. And the developments should be "positive
longer term," Steel says. Gold is traditionally viewed as a sound alternative
store of value in times of economic and political uncertainty. Spot gold +1.8%
at $1,572.20/oz.