Gold and defence contractors have emerged as key beneficiaries of the Venezuelan crisis, as the US military intervention fuels a broader rise in geopolitical tensions and investor demand for safe-haven and security-related assets, according to a report by DBS Bank.
Gold are prices likely to rise back again, helped by the plethora of factors defying softening safe-haven assets demand and expectations of fewer rate cuts this year by the US federal reserve bank, reported by Gulf news on Wednesday.
The global shift towards gold as a hedge against macroeconomic risks is also being reflected in India. The uncertainty surrounding the US election and potential rate cuts has driven up demand for safe-haven assets like gold.
The dragged geopolitical crisis in the Middle East has spurred a rush into safe-haven assets such as gold. Historically, gold, as an asset, is considered a haven as it typically manages to retain or appreciate its underlying value in times of turbulence.
Mumbai (Maharashtra) [India], Jan 6 (ANI): Equity benchmark indices crashed by nearly 2 per cent on Monday as geopolitical tensions shot up crude oil and gold prices.
Ahmedabad (Gujarat) [India], Aug 30 (ANI): A slowdown in global economy and escalating US-China trade tensions have pushed up the price of yellow metal up nearly 20 per cent so far this year.