Gold returned to growth on the Comex amid mounting tensions between the US and China
The price of gold futures for June delivery by 18:00 GMT on Comex has grown on 0,8% – to $1735,3 per ounce.
In this case, before the bidding closed with a decline of 1.7% to the level of the environment.
Tensions between the US and China has attracted investors to assets that are considered “safe havens,” notes MarketWatch. This concerns not only gold, but the national debt and the Japanese yen. On the other hand, experts believe that the increase in gold limit plans for resumption of business operations, which were frozen due COVID-19, and hope for a vaccine.
On Thursday after the publication of the PMIS for may on developed markets, investors have hastened to fix the profit received by the end of the recent rally, bringing the price of gold fell, explain analysts of Sberbank CIB. However, later in the evening there were reports that the Chinese authorities have announced plans to toughen Hong Kong’s legislation on national security. It has accelerated the decline in global markets, which typically beneficial to gold. Investors concerned about the impact of the Chinese initiative for the Hong Kong market and the escalation of tensions between China and Western countries, particularly the United States. Donald trump warned that the United States will react to the actions of Beijing to suppress democratic movements in the financial hub of Asia.
Tensions between Washington and Beijing began to intensify early, when early in the week, the Senate approved a bill to prohibit to stock exchange listing in the U.S. for Chinese companies that are not audited in accordance with U.S. legislation, the White house issued a strong anti-Chinese statements, adds Sberbank CIB.