Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from the Federal Reserve and other central banks.
rose $7.50, or 0.5%, to $1,407.60 an ounce, moving as high as $1,414.80 an ounce before pulling back. On Friday, gold settled above $1,400 an ounce for the first time since Sept. 3, 2013, according to FactSet. The contract rose 0.2% to finish at $1,400.10 an ounce, and gained 4.1% for the week.
Gold’s gains last week came after a Fed meeting in which the central bank held rates steady but spoke of “uncertainties” over the U.S. economic outlook. The European Central Bank and Bank of England also made dovish comments last week. Precious metals like gold tend to attract buyers in a low interest-rate climate.
But geopolitical tensions between the U.S. and Iran and uncertainties over the global trade front have also lured investors into gold, seen as a haven investment in times of political and economic uncertainty.
Global equities rose cautiously Monday after China’s state-run Xinhua news agency said Sunday that China’s President Xi Jinping will attend the G-20 summit in Japan this week, giving the first official confirmation of his attendance at the meeting, where he has been expected to talk on the sidelines with U.S. President Donald Trump.
Over the weekend Trump said he would impose new sanctions on Iran starting Monday, days after calling a halt to airstrikes on the country which shot down a U.S. military drone. But he also suggested the two countries will eventually have a positive relationship, toning down harsher rhetoric he has employed for much of his presidency.
“Gold’s stay above the psychological $1400 mark highlights the cautionary tone across various asset classes on Monday. Rising geopolitical tensions as well as the uncertainty over the U.S.-China standoff ensure that safe haven assets remain in a supportive environment for the time being,” said Han Tan, market analyst at FXTM, in a note to clients.
Elsewhere, July silver
rose 7 cents, or 0.4%, to $15.35 ounce, gaining 3.3% last week.
In other metals dealings, July copper
was mostly steady at $2.704 a pound. July platinum
added 0.2% to $812.50 an ounce, while September palladium
rose 0.4% to $1,506.10 an ounce.