Gold becomes more expensive as the increasing tension between the US and China
May 22 (Reuters) – the Price of gold rose on Friday, as the escalating tension between the U.S. and China has increased the demand for safe assets, however, gold could finish the week in negative territory amid positive economic data in connection with the removal of disincentives in some countries.
After losing 1.4 percent yesterday, the spot price of gold rose by 0.53% to $1.734,32 per Troy ounce by 13:38 GMT.
“Fundamentals still support gold. But in Europe and the USA there has been some improvement in manufacturing activity, PMI data last night was a little better,” said Avtar Sandu, senior Manager for commodities at Phillip Futures.
However, the growing tensions between the two largest economies of the world continued to soften risk appetite, offsetting the pressure of optimistic news.
Palladium fell 1.91 percent to $1.975,06 an ounce, silver was down 0.25% to $of 17.02 per ounce. The price of platinum fell 0.6% to $827,41.
(Swati Verma and K. Sathya Narayanan in Bangalore, translated by Olga Deviatiarov. Editor Mary Grabar)