Gold and silver up as global geopolitical disputes intensify

Precious metals gain following last week’s losses and increasing global uncertainty

                                

Gold and silver have bounced back after last week’s losses.

December gold futures rose to $1,498.50 an ounce by mid-afternoon UK trading, a gain of $10.10. Silver prices for the same month were up by $0.096 to $17.64 an ounce.

Both metals suffered last week in the wake of positive noises from the first round of Sino-American trade negotiations, and from the surprise announcement that the EU and the UK were reopening talks to find a suitable Brexit withdrawal agreement.

Such announcements caused gold in particular to drop by more than 1 per cent on Friday alone.

However, risk-averse investors are returning to the safe-haven asset as uncertainty around both negotiations returns and the mood music worsens.

A further cause for a return to gold was the news that China’s exports to the US dropped by around 22 per cent year-on-year in September.

Further evidence for gold’s long-term value as a safe haven asset can be found in a report from the Netherlands’ central bank. In a report published at the end of last week the Dutch National Bank observed: “Shares, bonds and other securities: there is a risk to everything. If the whole system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank's balance sheet.”

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image