Gold and Silver rally on geopolitical tensions – ING
Gold surged above $4,455/oz and Silver topped $77/oz as geopolitical risk in Venezuela and macro uncertainty drove safe-haven demand. Central bank purchases and expectations of easier monetary policy are underpinning Gold, while Silver benefits from both industrial demand and safe-haven appeal, ING's commodity experts Ewa Manthey and Warren Patterson note.
Central bank buying supports Gold amid policy uncertainty
"Gold and Silver continue to move higher as geopolitical risk and macro uncertainty boost demand for safe havens. A fresh focus on Venezuela following the US arrest of Maduro has added to the bid for precious metals, which is likely to persist until the situation stabilizes or policy clarity emerges."
"Gold climbed more than 2.5% to trade above $4,455/oz while Silver was up more than 5% in Monday’s trading above $77/oz."
"At the same time, continued central bank buying and expectations of easier monetary policy later this year are underpinning Gold. Silver is benefitting from both its safe haven appeal and resilient industrial demand linked to electrification and solar."
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FXStreet Insights Team
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