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.
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.