After Saudi Arabia’s oil facilities came under attack raising anxieties over worldwide energy supply and inflamed tensions across Middle East, investors turned to silver and gold, with these assets’ prices jumping over 1% on Mon.
The US gold future’s price climbed 0.83%-$1,512.1 while the price of spot gold leaped 1.27%—$1,507.40 an ounce. The SDPR GTETF (Gold Trust exchange-traded fund) plummeted 0.82%—$140.15 having 874.51 tons of gold on Friday.
Apart from gold, silver is also considered a safe investment, however, silver is also brought to use for producing electronic goods for consumers and also in industrial divisions, like solar panels. Spot silver saw a gain of 2.96%—$17.94 an ounce.
After a range of drone attacks on the world’s biggest oil dealing facility in Saudi Arabia, the country put a hold on half of the oil production. This led to the moves taken by investors to turn towards metals. The Houthi rebels of Yemen have claimed this attack and Iran has been accused by the administration of Trump.
As per the Saudi Aramco, the shutdown will affect nearly 5.7 M drums of crude manufacture a day; making it 5% of the daily global oil production. On the basis of a data released by the US EIA (Energy Information Administration), Saudi Arabia manufactured 9.85 M drums a day in August.
The energy minister of Saudi Kingdom stated that the strikes even halted gas production, reducing supply of natural gas and ethane by 50%.
The prices of Brent and US crude leaped over 9%, each Mon morning, in Asian hours.
Tehran has been accused by the US for the attack and called the strike an unprecedented strike on global energy supply. The strike has increased stress across the M. East. President Trump stated that the United States is loaded and locked but his admin is anticipating Riyadh to conclude the striker before it takes any action. Iran has discharged all the blame claiming it as meaningless.