Gold climbed to a seven-week high on Friday in London while the dollar continues to slump after disappointing US data and the Bank of Japan’s decision to forego further monetary stimulus.
– The spot gold price was last at $1,276.10/1,276.50 per ounce, up $10.30 on Thursday’s close. Trade has ranged from $1,265.10 to $1,280.90 – the highest since March 11 – so far.
– “A confluence of monetary and financial factors is supporting gold prices,” HSBC analyst James Steel said. “The US dollar is on the defensive and commodities are making a comeback. At the same time risk-off sentiment seems to be on the rise. These factors are individually good for gold, but when combined they are a powerful bullish cocktail.”
– Silver peaked at $17.873 earlier – its strongest since January 2015 – and was last at $17.715/17.735 per ounce, up 15 cents. Platinum climbed $12 to $1,059/1,064 – its highest since July 2015. Palladium at $627/632 was up $9 and its strongest since November 2015.
– “Silver and the PGMs are inspired by the gold rally and are outperforming it,” Steel noted. “Silver and the PGMs are small markets compared to gold and a negative shift in sentiment in gold could lead to a proportionately bigger sell-off in these metals.”
(Editing by Mark Shaw)
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Source: Bullion Desk News
