Gold prices resumed higher pressure on Monday, as precious metal flows continued to improve the prospects of fighter monetary policy from the Federal Reserve and other central banks.
GCQ19, + 0.99%
GCQ19, + 0.99%
increased $ 12.60 or 0.9% to $ 1,412.60 one ounce and nourished session height on $ 1
Read: Why gold prices have climbed to their highest since 2013
The gold gains last week came after a Fed meeting, where the central bank kept rates stable, but talked about "uncertainties" over the US economic prospects. The European Central Bank and the Bank of England also made clear comments during the week. Precious metals such as gold tend to attract buyers at a low level of interest rates.
But geopolitical tensions between the United States and Iran and uncertainties on the world trade front have also lured investors into gold, seen as a port investment in times of political and economic uncertainty.
Global stocks gently rose Monday after China's state-run Xinhua News Agency said Sunday that China's President Xi Jinping is taking part in the G20 summit in Japan this week and giving the first official confirmation of his attendance at the meeting where he is expected to speak on the sidelines with US President Donald Trump.
On the weekend, Trump said he would impose new sanctions on Iran on Monday, days after stopping disturbances in the country that shot down an American military drone. But he also suggested that the two countries will ultimately have a positive relationship that tones down harder rhetoric he has employed too much of his presidency.
"Gold's stay over the $ 1400 psychological mark highlights the alert across various asset classes Monday. Rising geopolitical tensions as well as the uncertainty about the US China standoff ensure that security securities are still in a supportive environment at the moment," he said. Tan, market analyst at FXTM, in a note to clients.
On Monday, UBS strategist Joni Teves and Roque Montero raised their three-month gold target to $ 1,430 from $ 1,380 per ounce. "A few years and more false starts later, we believe that the macro background has now begun to move more convincingly in the favor of gold, "said the analysts, although they added that the gold route is" unlikely to be a straight road. " They still maintain gold ending the year under the $ 1400 level, raising their final goals to $ 1,370 from $ 1,325 per ounce, their forecast for 2020 was raised to $ 1,450 from $ 1,350, and from 2021 to 2023, strategists expect gold to rise to end these years at $ 1,500.
Elsewhere, July silver
SIN19, + 0.59%
increased 7 cents, or 0.5%, to $ 15.36 an ounce, which rose 3.3% last week.
In other metals negotiations, July copper
was down 0.5% at $ 2,692 per pound. July platinum
PLN19, + 0.44%
added 0.52% to $ 814.70 one ounce while September palladium
PAU19, + 0.56%
increased 0.4% to $ 1,506.20 an ounce.