Precious metals increase in price following US capture of Maduro
Prices of precious metals including gold have climbed following the American capture of the Venezuelan president Nicolás Maduro. This has increased concerns among investors over geopolitical risks, according to the BBC.
Gold had in Monday morning trade in Asia had climbed by 1.8% to around $4,408 (£3,282) per ounce, while silver rose by around 3.5%. Some investors have moved their money into “safe-haven” assets.
Among precious metals, both gold and silver reached record highs last year before falling in the days leading up to the new year. Despite the dip, gold has still recorded its best annual performance since 1979, climbing by over 60% to an all-time high of $4,549.71 on Boxing Day.
These were driven by a number of factors such as an expectation of further cuts to interest rates, major purchases by central banks, and concerns over global tensions and economic uncertainty among investors.
Oil prices meanwhile fluctuated in early trade, being a little lower as investors questioned whether American actions in the South American country would affect supplies. Trump has vowed to tap into the Venezuelan oil reserves after capturing Maduro, saying that American will “run the country until such time as we can do a safe, proper and judicious transition.”
The move, according to industry analysts, will likely have little immediate impact on energy prices for people and businesses. It could cost billions, experts estimate, to fix the country’s oil infrastructure while has been in decline over the last two and a half decades.
Crude oil production in Venezuela has been “lacklustre” for some time, accounting for only 1% of the planet’s oil output, according to investment strategist Vasu Menon from OCBC bank.
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