RBC Maintains Constructive Outlook on Gold Amid Geopolitical Tensions
RBC Capital Markets has maintained a constructive outlook on gold despite near-term consumer headwinds and rising U.S. Treasury yields, which have increased the metal's opportunity cost to its highest level since 2023. The bank cited strong central bank demand and growing exchange-traded product holdings as key structural supports for gold prices. Geopolitical tensions are also driving repatriation of gold reserves. In parallel, RBC highlighted rising geopolitical risks in the Strait of Hormuz, where over 71% of commodity vessels went dark in August due to safety concerns—up from around 45% during a previous period of cooperation. The broker noted that at least 19 seafarers have been killed since the war began, reducing crew availability for this dangerous route. Chevron has pledged $7 billion over five years to boost production in Venezuela through its joint venture, while Eni SpA is also involved in drilling operations there. However, RBC warned that significant investment will be needed to restore pre-2000s production levels.
Tickers: $CVX
Topics: geopolitical tensions gold natural gas oil market shipping risks