Once again Gold prices are on the rise, as has been show by Tuesday’s price increase. Tensions betwen North and South Korea and worries about Europe sparked bullion buying. Deliveries of Gold<\/a> for June rose $4, or 0.3%, to $1,198 an ounce on the Comex division of the New York Mercantile Exchange. <\/p>\n Gold prices are $45 below a record of $1,243.10 hit May 12. The pullback just provided "an excellent entry point" for buyers as uncertainty surrounding a potential sovereign debt crisis in Europe and the more recent concerns with the Koreas, said Richard Ross, a technical analyst with Auerbach Grayson in New York. If gold closes above $1,200-$1,210 in the next few days "we have clear air between $1,250 and a re-test of the previous record," he added. <\/p>\n "It’s renewed flight-to-quality buying," said Matt Zeman, a trader at LaSalle Futures Group in Chicago. With increasing tensions on the Korean peninsula stock markets were sent rolling worldwide, with the Dow Jones Industrial Average\/ quotes\/comstock\/10w!i:dji\/delayed (DJIA 10,044, -22.82, -0.23%) falling below 10,000 for the first time since February. <\/p>\n Oil on the other hand lost nearly 2% and the geopolitical concerns spurred a flight to the dollar<\/a>. North Korea’s Kim Jong-il has reportedly ordered the North Korean security agencies and the People’s Army which is made up of all civilians, to be made ready for possible combat. Political tensions between North and South Korea have risen since a team of international investigators concluded that Pyongyang was to blame for the deadly sinking of a South Korean naval warship in March. <\/p>\n The dollar index \/quotes\/comstock\/11j!i:dxy0 (DXY 86.55, +0.34, +0.40%) , which stacks up the greenback against a basket of six currencies, rose 0.7% to 86.86. <\/p>\n Geopolitical tensions on "the Korean peninsula also have to be viewed with increasing alarm given how unpredictable and paranoid the North Koreans can be," MF Global analysts said in a report to clients on Tuesday. <\/p>\n Safe-haven buying "remains robust and supports interest in the metal, " analysts at Barclays Capital said in a note to clients Tuesday. <\/p>\n
\nGold is off $45 since its high on May 12 and the lower price is attracting the bargain hunters, he added.
\n"Gold is in one of the strongest technical positions among all asset classes amid all this current volatility,"
\nsaid Ross. <\/p>\n