In the wake of a historically dreadful shooting in New Zealand, one of the statistically safest countries in the world, you would be forgiven for thinking that financial markets would be reeling from the horror of seeing 49 people gunned down.
NZ is not the United States in terms of gun violence – the last time that more than ten people died in a shooting was 1990, nearly 20 years ago. Instead, there was an apparent bout of risk-on, with major US indices like the Dow Jones and Nasdaq rising sharply on the day.
One area where analysts did believe the terrorist attack had an impact was in the gold price, with a couple of reports suggesting that the bounce back above $1,300 was a direct result of the massacre.
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First, Chintan Karnani, chief market analyst at Insignia Consultants, said:
“New Zealand news is positively supporting gold, Brexit uncertainty is also supporting gold prices.”
Next, Naeem Aslam, strategist at ThinkMarkets UK, said:
“The attacks over in New Zealand has stunned the markets; Investors are seeking shelter under safe haven assets.”
New Zealand Terrorist Attack Wasn’t Gold’s Primary Driver
Well, I’m sorry to be unkind, but that is very much not the case. Perhaps there was a small amount of temporary noise from the terrorist attack,