[ad_1]
* Speculators lift long positions in gold COMEX end of May
* The holdings of SPDR Gold rose 0.3% Friday to 743.21 T
* Investors bet on the reduction of the rate of the Federal Reserve
(Add details and comments, update prices)
By Arijit Bose
June 3 (Reuters) – Gold prices rose on Monday to their
higher for over two months on the concerns that the US-Chinese
trade tensions and Washington's tariff threat on Mexico
would hurt the global economy.
Spot gold was up 0.7% to $ 1,314.20 an ounce at 1012
GMT, after touching its highest level since March 27 at $ 1,315.59.
US gold futures advanced 0.6% to $ 1,319.50 per ounce.
"Shelter buyers are coming back to gold again, because of
tariff negotiations, which is encouraging for the metal, "said Ross
Norman, general manager at Sharps Pixley.
"Gold has also sailed fairly evenly over several
levels such as $ 1,293 and $ 1,300, "he added, adding that the crossing
these technical barriers have accelerated the dynamics of the metal.
US-China relations slid lower when both
countries clashed at the Shangri-La dialogue in Singapore because of
security conflicts in Taiwan and the South China Sea. US equity futures, Asian stock markets and oil prices
slid to lows of several months on Monday as investors turned to
government bonds, the yen, the Swiss franc and gold. The factories activity has contracted in Asia and Europe
months as trade between the United States and China
fears of a global economic slowdown and exaggerated pressure
policy makers to deploy more stimulus. The dark prospect has prompted traders to increase bets that
the US Federal Reserve would reduce interest rates sooner than expected
only later.
"Gold finally behaved like a haven of peace last week, breaking
higher after the escalation of the trade war led to a red code for
global growth, "Edward Moya, Senior Market Analyst at OANDA,
says in a note.
The price of gold has exceeded the key level of $ 1,300 for the first
time since april friday after being stuck in almost $ 20
range for weeks.
Hedge funds and fund managers have increased their net long
COMEX gold positions in the week to May 28, the data
shown. Holdings of SPDR Gold Trust, the largest in the world
exchange-traded funds backed by gold, rose from 0.32% to 743.21%
tons Friday of Thursday. Spot Gold could test a resistance at $ 1,315 an ounce, a breakout
above which could lead to a gain in the range of
$ 1,321 to $ 1,330, according to Reuters technical analyst Wang Tao. In other precious metals, silver edged up 0.4%,
$ 14.63 per ounce, palladium increased 0.9% to $ 1,336.56
ounce.
Platinum rose 0.5% to $ 795.44 an ounce, after
fell last week to its lowest level since Feb. 15 at $ 784.42.
(Report by Arijit Bose and Nallur Sethuraman in Bangalore
Edited by Edmund Blair)
Outside the United States +91 8067495254; Reuters Messaging:
[email protected]))
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. It is not a solicitation to exchange products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept any liability for losses and / or damages resulting from the use of this publication.
[ad_2]
Source link