"The latest rally came after the U.S. launched strikes on Islamic State targets in Nigeria on Thursday, adding to other geopolitical tensions. Earlier in the week, the Trump administration continued to pile on more pressure on Venezuela by targeting additional oil tankers, squeezing a key source of revenue for the Maduro regime. Meanwhile, the Pentagon sent large numbers of special-operations aircraft, troops and gear into the Caribbean, sources told the Wall Street Journal."
"The extra military assets join a flotilla of Navy ships that has been building up in the region for months, while President Donald Trump hints that U.S. attacks will soon expand from suspected drug boats to targets on land. With the threat of a new regional conflict breaking out, investors have sought out safe-havens. At the same time, debt worries have made precious metals appear safer than other assets like the dollar and yen."
U.S. markets reopened with stocks little changed while precious metals rallied to new highs: silver topped $78 per ounce, gold reached $4,561, and platinum and palladium jumped double digits. Year-to-date gains for silver, platinum and palladium far outpaced gold, Nvidia and the S&P 500. The rally followed U.S. strikes on Islamic State targets in Nigeria and increased pressure on Venezuela, alongside a buildup of military assets in the Caribbean and hints of expanded U.S. operations. Investors moved into safe-haven metals amid geopolitical risk and concerns about debt monetization tied to Fed easing and rate cuts.
Read at Fortune
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