Europe open: Gold, silver, oil in focus as political tensions drive sentiment

(Sharecast News) - European shares opened higher on Thursday amid a deluge of corporate results, another surge in gold and silver prices due to a weak dollar, the US Federal Reserve's decision to keep rates on hold and increased tensions between Washington and Iran.

The pan-regional Stoxx 600 index was up 0.49% to 611.56 points at 0831 GMT with most markets higher except for Germany's DAX which registered a 0.51% fall after Europe's biggest economy cut growth forecasts for this year and 2027, citing heightened global trade uncertainty and slower-than-expected benefits from fiscal stimulus policy measures.

Gold hurtled past $5,500 an ounce in early trade, only three days after passing the $5,000 mark for the first time. The precious metal has risen almost by a third this month alone.

Meanwhile, silver hit $120 an ounce for the first time taking gains so far this year to 65%.

Investors are running to de-risk their holdings as increased geopolitical and economic tensions make equities a less certain bet. A weaker dollar, sparked by US President Donald Trump's comments that he was happy with the currency's decline, also boosted the gold price, sending shares in miners such as Glencore, Antofagasta, Rio Tinto, Anglo American and Fresnillo higher.

Trump's decision to send a naval fleet towards Iran sparked supply fears, sending Brent crude to a four-month high of $69.37 a barrel - a rise of 1.42%.

He said a huge US armada was moving quickly towards the country "with great power, enthusiasm and purpose".

Elsewhere on the equities front, shares in private equity group 3i surged more than 14% as it reported a further rise in net asset value over the nine months to December.

Swiss engineer ABB jumped after providing an upbeat outlook and launching a $2bn share buyback.

German software maker SAP slumped despite a rise in cloud bookings.

Reporting by Frank Prenesti for Sharecast.com