Gold rose above US$4,455 per ounce, and silver topped US$77 per ounce, as geopolitical risks in Venezuela and macro uncertainty drove safe-haven demand. Central bank purchases and the outlook for easier monetary policy are supporting gold, while silver benefits from both industrial demand and safe-haven appeal, ING commodities experts Ewa Manthey and Warren Patterson note.
Central bank purchases support gold amid policy uncertainty
“Gold and silver continue to rise as geopolitical risks and macro uncertainty boost demand for safe havens. The new focus on Venezuela following the US arrest of Maduro has increased demand for precious metals, which is likely to continue until the situation stabilizes or policy clarity emerges.”
“Gold rose more than 2.5% to trade above $4,455 an ounce, while silver rose more than 5% in Monday trading above $77 an ounce.”
“At the same time, continued central bank buying and expectations for easier monetary policy later this year are supporting gold. Silver is benefiting from its safe-haven appeal and resilient industrial demand linked to electricity and solar.”
