Gold prices are higher on Monday amid tensions in the Middle East, which has sparked safe-haven buying, the Wall Street Journal reports. After an attack on its embassy in Tehran, Saudi Arabia cut off diplomatic ties with Iran.
The precious metal is rising due to "saber-rattling in the Middle East, but it's a one-day phenomenon rather than a new trend," Paul Nolte, a portfolio manager at KingsviewAssetManagement, told the Journal.
Additionally, investors turned to gold after weak economic data in China triggered a global sell-off in stocks on Monday, according to the Journal. The Dow Jones Industrial Average lost 423 points as of mid-afternoon trading on Monday.
Gold for February delivery is up by 1.35% to $1,074.50 per ounce on the COMEX this afternoon.
Based in Vancouver, NovaGold is engaged in the exploration and development of gold and copper mineral properties.