The Australian share market has followed the lead of international markets and is down sharply today after the Trump-Comey controversy continues to intensify and weigh heavily on investor sentiment.
Unsurprisingly this has led to a flight to safety and taken the spot gold price to its highest level in two weeks.
At present the spot gold price is fetching approximately US$1,258 an ounce.
As you might expect, Australia's leading gold producers have surged higher today and taken the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) 2% higher.
Highlights include the Newcrest Mining Limited (ASX: NCM) share price and the St Barbara Ltd (ASX: SBM) share price which are each up around 3%.
Elsewhere Regis Resources Limited (ASX: RRL), Resolute Mining Limited (ASX: RSG), and Perseus Mining Limited (ASX: PRU) have also made notably strong gains.
Should you invest in gold?
Whilst I do think that a little bit of exposure to gold is good for a balanced portfolio, I'm still not overly convinced that now is the time to open a position.
If rates in the United States do rise as expected this year regardless of the Trump-Comey saga, then I expect the gold price and miners to come under pressure.
But if you're not as bearish on gold as I am then adding a bit of gold to your portfolio with an investment in a high quality miner like Newcrest may not be a bad idea.
