Gold Price Rises 1% On Uncertainty Over Donald Trump’s Response To China



Gold Price Rises 1% On Uncertainty Over Donald Trump's Response To China

Spot gold was last seen trading up 0.9% at $1,734.60 per ounce

Gold rose 1 per cent on Friday as caution set in with investors awaiting US President Donald Trump’s response to a Chinese national security law for Hong Kong and its potential impact on an already fragile global economy.

Spot gold climbed 0.9 per cent to $1,734.60 per ounce by 10:12 pm.

US gold futures rose 1.3 per cent to $1,750.20.

“Markets are now strictly focused on the two largest economies and what is likely going to be a long, drawn-out battle,” said Edward Moya, a senior market analyst at broker OANDA.

“You’re going to continue to see safe-haven demand (for gold) because the uncertainty over how the US-China tensions are going to play out is extremely high.”

Mr Trump is expected to hold a news conference on China later on Friday as his administration moves to pressure Beijing over its treatment of Hong Kong.

Mounting fears over the economic toll from the coronavirus, exacerbated by the widening US-China rift, and a resultant environment of low interest rates globally have put safe-haven bullion on track for a 3 per cent monthly gain.

“Stock market gains are likely to cap gold’s upward momentum, however, gold prices have risen amid a risk-on environment and a risk-off environment,” said Standard Chartered Bank analyst Suki Cooper. “There is good downside support around $1,700 and resistance around $1,765.”

Wall Street’s main indices fell on Friday, bolstering gold’s appeal.

Elsewhere, silver gained 2.3 per cent to $17.81 an ounce. Prices were up 18.7 per cent for the month, the biggest gain since January 2012.

Global efforts to restart economies could boost silver demand, making prices of the metal, which slipped to an all-time low relative to gold during the crisis, likely to rebound strongly.

Palladium rose 0.1 per cent to $1,933.59 an ounce. Platinum slipped 0.9 per cent to $830.92 but was on track for its best month since August 2019.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *