Gold futures rose on Friday, driving a monthly gold price of around 3% amid tensions between the United States and China and global monetary stimulus.
President Donald Trump has said he plans to hold a press conference on China on Friday, but has not set a specific time. His expected comments would come after the American governments. The United States, Australia, Canada and the United Kingdom released a joint statement on Thursday reiterating their “deep concern over Beijing’s decision to impose national security law in Hong Kong”, after Chinese parliament , the Pueblo National Congress passed a law on Thursday that could significantly reduce democratic freedoms.
Fawad Razaqzada, market analyst at ThinkMarkets, said that “the growing divide between the United States and China, which has been exacerbated by Beijing’s move to enforce security law in Hong Kong, has further increased the ‘attraction of the paradise of metals “. , in a research note on Friday. .
Gold august
GCQ20,
GC00,
It rose $ 21.60, or 1.3%, to $ 1,749.90 an ounce, after rising just 0.1% on Thursday. Meanwhile, Julio Plata
SIN20,
it rose 40.3 cents, or 2.2%, to trade at $ 18.37 an ounce, returning to a psychologically significant level above $ 18.
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For the month, gold rose by more than 3%. Silver was headed for a monthly gain of almost 23%, which would be the best monthly performance since April 2011, according to Dow Jones Market Data.
“Silver’s uproar continued almost uninterruptedly throughout the month of May,” said Ryan Giannotto, director of research for GraniteShares. “Although silver is one of the most volatile metals, after a 20% monthly gain over a 6% gain in April, the trend may be exhausted.”
Meanwhile, “gold had one of its most consistent return months in May,” Giannotto told MarketWatch. Even with the optimism of the market around the reopening, gold saw a gain, “underlying the all-weather investment characteristics of the precious metal”.
“Tensions around the autonomous state of Hong Kong are clearly at the center of the next gold movement, with potential not only for a weakening dollar but also for increased demand for safe haven,” he said. “This scenario would represent a double gain for gold.”
In addition, Federal Reserve Chairman Jerome Powell is scheduled to participate in a remote event at Princeton University at 11:00 a.m. EST to be watched by commodity investors looking for clues to monetary policy. in the midst of a COVID-19 pandemic.
The Federal Reserve’s balance sheet increased to $ 7.1 trillion on Wednesday, from $ 7.04 trillion last week, as the central bank continues to act to support financial markets during the public health crisis. Much of this growth came from a $ 33 billion increase in central bank emergency loan programs to buy corporate bonds, which kept public and corporate debt yields at a level low and had the effect of enhancing attractiveness. gold, which does not offer a coupon
Traders have also digested the latest batch of US economic reports. United States Personal income rose 10.5% in April, thanks to government emergency payments for coronaviruses, although consumer spending fell. The Chicago purchasing managers’ index for May fell to 32.3 from 35.4 in April. The University of Michigan consumer confidence index reached a final reading of 72.3 in May, compared to a final April level of 71.8.
Among other metals Comex, July copper
HGN20
Prices traded with little change at $ 2.4095 per pound, but prices, based on the most active contracts, increased approximately 2.7% monthly.
“Copper has continued to grow slowly but steadily as the industrial economy recovers from the lowest point of closure,” said Giannotto.
July platinum
PLN20,
It rose 0.2% to $ 870.20 an ounce, up 7% during the month. September Palladium
PAU20,
it lost 0.9% to $ 1,928.30 an ounce, just over 1% for the month.