Gold Surpasses $1,350 Level as Demand in Safe-Haven Grows
June 14, 2019 | Friday
Gold bounced to more than 1% on Friday. It topped the $1,350 level for the first time since April last year. The surged was due to the spur of the weak economic data from China and the United States. Also, political struggles in the Middle East increased safe-haven demand.
In addition to that, that spot gold price rose 1.01% to $1,355.49 per ounce, after reaching its highest-level last April 11, 2018, at $1,358.04 earlier in the session. And this week, the bullion climbed 1.1%, putting the yellow metal on track for its fourth straight weekly gain.
Also, the U.S. gold futures rose 1.2% to $1,359.50 per ounce. SPI Asset Management's managing partner Stephen Innes stated, "Geopolitical risk premium ratcheting higher on the back of Middle East tensions, and autonomy protest in Hong Kong. Gold represents dependable insurance against those mounting geopolitical risks."
The U.S. Market Meanwhile, the U.S. accused Iran of attacking the two oil tankers in the Gulf of Oman. As a result, it lifted concerns about a new U.S.-Iranian confrontation. And last Thursday, commotions began between demonstrators and police in Hong Kong as hundreds of people held a protest against a planned extradition law with mainland China.
Speaking of China, the country's industrial output growth weakened to more than 17-year low of 5% in May. It is the current sign of slowing demand in the world's second-largest economy as the U.S. ramps up trade pressure.
Then the managing partner of SPI said, "If we have the world's second-largest economy struggling, arguably we also have the U.S. struggling. This is bad, and we know we are one step away from recession."
Moreover, in the U.S. labor market, the effect of the ongoing trade war was also visible. And it showed a remarkable increase in the number of Americans filing applications for unemployment for the last week.
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