Gold prices rose Monday as riots in major US cities concerned investors already reeling from strained US-China ties and boosted the demand for the safe-haven precious Yellow metal, with a weaker dollar lending further support.
Spot gold gained 0.9% at 1,741.61 oz by 0509 GMT. US gold futures was up 0.3% to 1,757.50.
Concerns about the unrest in the United States at the moment appear to be weighing on market sentiment and that rising tensions between the world’s Top 2 economies further supported gold.
Protesters have flooded the streets in the US over the death of George Floyd in police custody, in a wave of outrage sweeping the nation.
The closely packed crowds and demonstrators not wearing masks have sparked fears of a resurgence of C-19 coronavirus chaos.
Meanwhile, in Asia, China’s state media and the Hong Kong government lashed out Sunday at President Trump’s pledge to end Hong Kong’s special status if Beijing imposes new national security laws on the city.
Gold is often used as a safe store of value during times of political and financial uncertainty.
Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, rose 0.3% to 1,123.14 tonnes Friday, a fresh 7-yr high.
Further supporting gold’s appeal .DXY fell 0.3% Vs its peers.
Elsewhere, silver rose 2.5% at 18.29 oz, its highest since 25 February.
Speculators cut their Bullish positions in COMEX gold and increased them in silver contracts in the week to 26 May, the US Commodity Futures Trading Commission said Friday.
Palladium rose 0.9% to $1,961.50 per ounce, and platinum increased 0.4% to $841.37.
Have a healthy week, Keep the Faith!