Gold prices climb as US riots spark safe-haven rush

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Originally published on “gold” – Google News on 2020 06 01 by https://economictimes.indiatimes.com/markets/commodities/news/gold-prices-climb-as-us-riots-spark-safe-haven-rush/articleshow/76133207.cms

Gold rose on Monday as riots in major US cities rattled investors already reeling from strained Sino-US ties and boosted demand for the safe-haven metal, with a weaker dollar lending further support.

Spot gold gained 0.8 per cent to $1,739.59 per ounce by 0802 GMT, having surged 1 per cent earlier. US gold futures inched up 0.1 per cent to $1,752.50.

The dollar index fell 0.5 per cent against its rivals.

“The protests are obviously not a positive sign given the fragility of the US economy at the moment, and the need to get out from under lockdown,” said Michael McCarthy, chief strategist at CMC Markets.

Protesters have flooded the streets in the United States over the death of George Floyd in police custody.

The closely packed crowds and demonstrators not wearing masks have sparked fears of a resurgence of COVID-19, which has killed more than 101,000 Americans.

Meanwhile, in Asia, China’s state media and the Hong Kong government lashed out on Sunday at US President Donald Trump’s pledge to end Hong Kong’s special status if Beijing imposes new national security laws on the city.

Geopolitical tensions are rising from the blame game between the West and China, and as the dispute in Hong Kong intensifies, Fitch Solutions said in a note.

This will “catalyse gold bulls throughout 2020 at least”, as investors seek security in safe-haven assets, it added.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.3 per cent to 1,123.14 tonnes on Friday, a fresh seven-year high.

Elsewhere,

silver

rose 2.4 per cent to $18.26 per ounce, its highest since Feb. 25.

Speculators cut their bullish positions in COMEX gold and increased them in silver contracts in the week to May 26, data showed on Friday.

Palladium rose 1.1 per cent to $1,965.39 per ounce, and platinum ticked up 0.1 per cent to $838.82.


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