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Gold Finishes Best Week Since June Above $1,500

Summary:
Gold futures are finishing the trading week above ,500 for the first time in six years. Despite edging up a fraction of a percent on Friday, the yellow metal enjoyed its best week since the end of June. With central banks worldwide cutting interest rates and no end in sight to the US-China trade conflict, it is likely that gold still has some more room to grow. December gold futures tacked on .00, or 0.07%, to ,510.50 per ounce at 14:19 GMT on Friday on the Comex division of the New York Mercantile Exchange. Gold recorded a 4% weekly jump, lifting its year-to-date gains to just under 18%. Silver, the sister commodity to gold, also enjoyed another incredible week. September silver futures added %excerpt%.035, or 0.21%, to .97 an ounce. The white metal ended the trading week up 4.6%,

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Gold futures are finishing the trading week above $1,500 for the first time in six years. Despite edging up a fraction of a percent on Friday, the yellow metal enjoyed its best week since the end of June. With central banks worldwide cutting interest rates and no end in sight to the US-China trade conflict, it is likely that gold still has some more room to grow.

December gold futures tacked on $1.00, or 0.07%, to $1,510.50 per ounce at 14:19 GMT on Friday on the Comex division of the New York Mercantile Exchange. Gold recorded a 4% weekly jump, lifting its year-to-date gains to just under 18%.

Silver, the sister commodity to gold, also enjoyed another incredible week. September silver futures added $0.035, or 0.21%, to $16.97 an ounce. The white metal ended the trading week up 4.6%, increasing 2019 gains to more than 9%.

Precious metals are rallying as of late, buoyed by a large number of factors. But what makes these elements bullish for bullion is that they could linger on for many weeks or months to come.

Recently, the central banks of India, New Zealand, and Thailand surprised investors as they introduced a series of rate cuts, signaling to policymakers that accommodation is here to reverse the economic slump. These moves came a week after the Federal Reserve slashed its benchmark interest rate for the first time in more than a decade by a quarter-point to a target range of 2.00% to 2.25%.

Europe, meanwhile, continues to contend with instability and weak economies. The latest development involved Italy and the leadership requesting a snap election. The European Union’s third-largest economy is embroiled in political chaos as the government clashes with Brussels over the budget. The news, which could take place in the fall, sent European markets plunging.

Trade remains in the spotlight after the White House said that it is no longer interested in working with Chinese telecommunications juggernaut Huawei. The administration further noted that it is not ready to make a trade deal. Beijing, on the other hand, might target US crude oil in its quest to retaliate against the latest 10% tariffs on the remaining $300 billion in Chinese goods.

Metals also received a slight boost on a weaker US dollar as the greenback tumbled 0.13% to 97.49. A lower buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to buy.

All these factors are driving investors into safe-haven assets, like gold and even bitcoin. Bank of America Merrill Lynch said in a report on Friday that precious metal funds reported their fourth-largest inflows in history.

Does this mean $1,550 is gold’s next target? It should be a compelling second half for gold.

In other metal markets, September copper futures slipped $0.015, or 0.6%, to $2.59 per pound. September platinum futures shed $4.30, or 0.5%, to $863.20 an ounce. September palladium futures edged up $2.40, or 0.17%, to $1,415.90 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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