Precious metal prices showed a sharp increase at the opening of trading on Monday, January 5. Investors are massively buying gold and silver, reacting to a sharp escalation of the geopolitical situation after US forces detained Venezuelan leader Nicolas Maduro. This is reported by UNN with reference to Bloomberg.
Details
The spot price of gold rose by 0.9%, exceeding the mark of $4370 per ounce. Silver also rose by 0.7%, reaching $73.32. Analysts attribute this movement to the high level of uncertainty regarding Washington's further steps in Latin America.
Market reaction
Experts note that US intervention has forced markets to price in new military and political risks.
Markets are now forced to reconsider not only the risks of Venezuela, but also the unpredictability of the US and its military influence
Gold continues the upward trend recorded last year, when the metal showed its best performance since 1979. In addition to geopolitics, prices are supported by active metal purchases by central banks and the expected easing of the US Federal Reserve's policy.
Other assets
Amid the Venezuelan crisis, platinum and palladium also showed growth. The Bloomberg spot dollar index strengthened by 0.1%. At the same time, analysts warn of possible volatility in the oil market, as Venezuela has the largest proven crude oil reserves in the world.
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