Precious metals rise on geopolitical risks

Thursday, 13. June 2019 12:06

Gold and silver gained on Thursday as investors continued to expect the Federal Reserve to cut interest rates in September for the first time since late 2008. Bets on a downturn in the economies of the United States and the Eurozone and possibly on a wider scale persisted as sovereign yield curves were looking to steepen after substantial inversions. Adding to risk aversion were fires on two tankers in the Sea of Oman, with allegations that the vessels have been attacked. One of them was reportedly hit by a torpedo.

The incidents happened amid a rise in tensions between Iran and the administration in Washington and criticism exchanged between China and the West on multiple fronts. The world's second-largest economy is in a trade war with the US. Of note, Turkey seems determined to purchase Russian S-400 air defense systems in spite of threats from the Pentagon.

Gold was 0.28% in the green at 12:04 pm CET, selling for $1,337.24 per ounce. Silver gained 0.48% to $14.85 and platinum advanced 0.45% to $814.39 per troy ounce. Palladium, on a six-day rising streak, traded 1.27% up at $1,429.64 after hitting $1,436.14, a level unseen since April 29.

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