Failed insurrection in Russia shows how fragile the global social fabric is, which will support long-term gold prices – by Neils Christensen (Kitco News – June 25, 2023)

https://www.kitco.com/

(Kitco News) – The gold market is starting the week on a slightly positive note, and while it may not be catching a major safe-haven bid after a 24-hour insurrection in Russia, analysts said that gold should remain a vital portfolio diversifier in times of heightened uncertainty.

The gold market remains under the critical psychological level at $1,950 an ounce after mercenaries with the Wagner Group, led by Yevgeny Prigozhin, launched an armed rebellion and marched to within 200 kilometers of Moscow during the weekend.

August gold futures last traded at $1,936 an ounce, up 0.34% on the day. The rebellion ended nearly as quickly as it started as Moscow made a deal with Prigozhin, exiling him to Belarus and offering amnesty to Wagner’s professional soldiers if they stood down.

Although Vladimir Putin remains the leader of Russia, according to many political analysts, his iron grip on power has weakened significantly in the last 24 hours. Jeffrey Christian, managing director of CPM Group, said with the attempted coup failing, gold prices in the next few days could see some short-term selling pressure as cooling geopolitical fears reduce the precious metal’s safe-haven allure.

For the rest of this article: https://www.kitco.com/news/2023-06-25/Failed-insurection-in-Russia-shows-how-fragile-the-global-social-fabric-is-which-will-support-long-term-gold-prices.html