Gold, silver rise sharply
Gold and silver prices rose sharply in US trading Tuesday, with silver hitting a three-year high at US $19.14 per ounce. Uncertainty sparked by the US-China trade war, Brexit, and protests in Hong Kong have combined to lead investors to see the commodities as safe bets amid turmoil, driving the prices up. Gold futures rose 1.7 per cent to $1,555.90 per ounce, whilst silver rose 3.7. Platinum also rose by 2.5 per cent. On Monday, gold prices hit a six-year high.
“Equities are on the back foot, that’s what’s keeping gold higher,” Ryan McKay of TD Securities told Reuters. “There’s a lot of uncertainty on the Brexit front, politics in Italy, protests in Hong Kong as well – a lot of stuff that’s positive for gold.”
BNP Paribas analysts noted: “Gold has aggressively priced in Fed rate cuts. With little opportunity cost in holding gold and growing economic uncertainty tied to escalating U.S.-China trade tensions, investor appetite for the yellow metal has grown.”
Silver is hot on the heels of gold and could hit $25 an ounce in the next couple of months if current growth continues.