Gold futures posted the biggest weekly advance in almost two years, extending gains on Friday and pushing up producer stocks, as mounting economic and geopolitical tensions fueled demand for the metal as a haven.
Bullion rose midweek as the US Federal Reserve stuck with plans to raise rates only three times this year.
It moved higher on Friday as prospects of a trade fight between the US and China stoked concern that global growth will slow.
Photo: Reuters
The ascent of John Bolton as US President Donald Trump’s national security adviser was seen adding to risks of a more muscular US approach to some of the world’s hot spots, further unsettling markets.
“The specter of a heated trade war between the US and China has the marketplace spooked to end the trading week,” Jim Wyckoff, senior analyst at Kitco Metals Inc in Montreal, said in a report. Bolton’s appointment “may also be causing some stress in the marketplace.”
Gold futures for June delivery on Friday climbed 1.7 percent to settle at US$1,355.70 an ounce on the Comex in New York.
Kinross Gold Corp and Yamana Gold Inc led gains by large producers, had their best day in more than five weeks.
The metal advanced 3.3 percent this week, the most since April 2016.
Bullion, which surged last year by the most since 2010, had sputtered this year as the prospect of higher interest rates spurred investors to chase higher-yielding assets.
There are other signs that bullion is winning favor with investors again.
Global holdings in exchange-traded funds have risen to the highest level since 2013, while traders and analysts in a Bloomberg survey are the most bullish on the metal’s outlook in almost two months.
“It’s been a good week for precious metal bulls, with multiple factors supporting the yellow metal,” said Jordan Eliseo, chief economist at Australian Bullion Co.
SOYBEAN, HOGS PLUNGESoybean and hog futures fell after China slapped reciprocal tariffs on US imports, putting commodities in the crossfire of an escalating trade war.
Included in China’s 128-item tariff list are steel products, ethanol, almonds, fresh and dried fruits, and ginseng.
Soybean futures for May delivery on Friday fell as much as 2 percent to US$10.0925 a bushel on the Chicago Board of Trade, the lowest for the contract since Feb. 12.
Hog futures for June settlement on Friday fell 1.8 percent to 74.15 US cents a pound on the Chicago Mercantile Exchange.
This week, the price plunged 6.3 percent, the most ever.
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