Gold Shines Brightest Yet On Economic Uncertainty And Global Risks
Spot gold rose to US$4,459.60 an ounce, extending gains amid heightened geopolitical tensions and expectations of further US interest-rate cuts.
The metal advanced 2.4% on Monday, marking its biggest one-day jump in over a month, as traders anticipated that the Federal Reserve may reduce borrowing costs next year. Lower interest rates typically boost the appeal of precious metals, which do not yield interest.
Investor demand for safe-haven assets has been further reinforced by rising tensions in Venezuela, where the US has blockaded oil tankers in an effort to pressure President Nicolás Maduro’s government.
As of 7.35 am in Singapore, spot gold was trading slightly lower at US$4,456.12 an ounce. Silver rose 0.3% to US$69.21 an ounce, close to its previous session’s record of US$69.4549. Platinum and palladium also gained, while the Bloomberg Dollar Spot Index fell 0.4% in the previous session.
Bloomberg
