Gold Hits 2-Month High As Recession Worries Drive Safe-Haven Demand


Here is a article about hits 2-month high. If you want to read the original article you can find the link at the end of this post.

June 3 (Reuters) – Gold prices rose on Monday to their highest in more than two months, with investors seeking refuge in safe-haven assets as heightened Sino-U.S. trade tensions and Washington’s threat of tariffs on Mexico stoked worries of a global recession.

FUNDAMENTALS

  • Spot gold was up 0.5% at $1,311.15 per ounce at 0153 GMT, after touching its highest since March 28 at $1,311.44.
  • The metal climbed above the key $1,316 level on Friday for the first time since April 11.
  • U.S. rose 0.4% to $1,314.40 an ounce.
  • U.S. stock futures, Asian share markets and oil prices slipped to multi-month lows on Monday amid the mounting trade worries.
  • Tensions between the and China escalated during the weekend as the two countries clashed over trade, technology and security.
  • A senior Chinese official and trade negotiator said on Sunday the United States cannot use pressure to force a trade deal on China, refusing to be drawn on whether the leaders of the two countries would meet at the G20 summit to work out an agreement later this month.
  • Global equity funds have seen outflows of $10.3 billion in the past week as the U.S.-China trade conflict prompted investors to take shelter in government bonds.
  • In a sign that Sino-U.S. frictions are putting a big strain on the global economy, South Korea’s exports – seen as a bellwether of world growth – fell 9.4 percent in May, worse than a median forecast for a 5.6 percent decline, official data showed on Saturday.
  • The gloomy outlook has prompted traders to increase bets that the U.S. will cut interest rates sooner rather than later.
  • Hedge funds and money managers increased their net long positions in COMEX gold in the week to May 28, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
  • Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.32 percent to 743.21 tonnes on Friday from Thursday.
  • The U.S. Mint sold 4,000 ounces of American Eagle in May, down 60 percent from the previous month, according to the latest data.
  • Gold premiums in top consumer China rose last week as investors bought the metal as a safe-haven, while bullion demand moderated in India as local prices jumped to two-week highs.

DATA AHEAD (GMT)

  • 0750 France Markit Mfg PMI May
  • 0755 Germany Markit/BME Mfg PMI May
  • 0800 EU Markit Mfg Final PMI May
  • 0830 UK Markit/CIPS Mfg PMI May
  • 1400 US ISM Manufacturing PMI May (Reporting by Nallur Sethuraman in Bengaluru; Editing by Joseph Radford)

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