Gold Tops $1,300 for Highest Finish since June
The comments below are an edited and abridged synopsis of an article by Myra P. Saefong
Gold futures for April delivery settled above $1,300 an ounce last Friday, with the price at its highest level since June, as the US dollar pulled back and investors eyed geopolitical turmoil and global growth worries.
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The rising gold price reflects political uncertainty in the US, the EU, Venezuela and pockets of South America, as well as China-US trade talks, said George Gero, managing director at RBC Wealth Management.
Gold for April delivery added $18.30, or 1.4%, to settle at $1,304.20 an ounce after trading as high as $1,305.80. The April contract notched its highest finish since June and climbed by 1.2% for the week.
March silver rose 39.9 cents, or 2.6%, to $15.69 an ounce, settling 2% higher for the week.
“The US dollar has weakened again ahead of next week’s FOMC meeting amid growing expectations that the [Federal Reserve] will reiterate the need to pause its
hiking cycle,” said Fawad Razaqzada, market analyst at Forex.com.
The ICE US Dollar Index, a measure of the currency against six major rivals, was off 0.8%, trading 0.5% lower for the week. A weaker dollar can be supportive for dollar-priced commodities by making them cheaper in other currencies.
“In addition, the yuan has been on the rise on hopes over a resolution in US-China trade dispute. With a stronger renminbi, Chinese consumers can buy more gold than was the case previously,” Razaqzada said.
Meanwhile, the IMF cut its 2019 global growth forecast and a round of downbeat Chinese economic data have underpinned gold, often considered a haven asset, said Lukman Otunuga, research analyst at FXTM.