"Gold rallied on Monday, as investors reacted to the sudden escalation of geopolitical risk in Latin America, prompting a renewed rush into safe-haven assets. The unexpected developments fuelled concerns about an increase in tensions in the region. Investors could remain sensitive to the next steps in the US-Venezuela relationship. A more peaceful collaboration between the two countries could help alleviate geopolitical concerns, which could weigh on gold."
"However, renewed tensions or additional actions in the region could drive demand for gold and other safe-haven assets. More broadly, geopolitical risks remain elevated globally. Tensions in Eastern Europe have intensified again, undermining hopes for near-term de-escalation, while the Middle East continues to face a fragile environment. On the macro front, investors are also positioning ahead of a heavy US data calendar, including ISM PMIs, and employment figures, alongside speeches from several Federal Reserve officials."
Gold prices rose as investors sought safe-haven assets following a sudden escalation of geopolitical risk in Latin America. The unexpected developments raised concerns about increasing regional tensions and kept markets sensitive to the next steps in the US-Venezuela relationship. A peaceful collaboration could ease concerns and reduce gold demand, while renewed tensions would boost demand for gold and other safe havens. Global geopolitical risks remain elevated, with renewed Eastern Europe tensions and a fragile Middle East. Investors also positioned ahead of heavy US data—ISM PMIs and employment figures—and Federal Reserve officials’ speeches, amid expectations of a potentially more dovish Fed chair nomination.
Read at London Business News | Londonlovesbusiness.com
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