Gold Set for Weekly Gain on Trade War, Fed Statement
Gold is headed for a weekly gain after volatile trading, with investors assessing trade tensions and the possibility of a U.S. interest rate cut.
Bullion was steady near $3,360 an ounce, about 1% higher this week, after hitting a record high on Tuesday before a sharp two-day decline. U.S. President Donald Trump has insisted that his administration is talking to China about trade, though Beijing has denied that negotiations are underway.
Federal Reserve Chairman Christopher Waller has said he would support monetary easing if the job market worsens because of the trade war. Similarly, Cleveland Fed Bank President Beth Hammack told CNBC that policy makers could cut interest rates as early as June. That would typically benefit gold because it doesn’t pay interest.
The precious metal has risen more than a quarter this year as the Trump administration’s aggressive trade policies have roiled financial markets, spurring demand for safe-haven assets. The gains have been supported by inflows into bullion-backed exchange-traded funds, as well as buying by central banks. There are also signs of strong demand in China, including from retail investors.
Gold for immediate delivery rose 0.3% to $3,359.20 an ounce at 8:25 a.m. in Singapore after topping $3,500 earlier in the week. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium were steady.
Source: Bloomberg
