• 8 hours 3 of the Most Interesting New ETF Themes of 2021
  • 1 day Mid-Term Bitcoin Outlook Remains Murky
  • 3 days Big Business’ New COVID Initiative: No Jab, No Job
  • 5 days The Most Interesting Stocks Of Earnings Season, For Better or Worse
  • 7 days Chinese Stocks Rebound After Regulatory Scare
  • 9 days Apple Stocks Falls After Blowout Earnings Report
  • 9 days The 5 Biggest IPO Disasters Of 2021
  • 10 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 13 days Ireland Balks At Biden’s Global Tax Plan
  • 16 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 20 days Facial Recognition Is Watching You
  • 21 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 21 days The Fed’s $3 Trillion Headache
  • 24 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 24 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 25 days Delta Variant Real Threat To Economic Recovery
  • 28 days JEDI Drama Continues With Microsoft Contract Cut
  • 30 days DiDi Shares Take a Beating From Chinese Regulators
  • 31 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 31 days Jobs Report Has Big Numbers, But Still Big Problems
Is The Gold Miner Bull Run Coming To An End?

Is The Gold Miner Bull Run Coming To An End?

All bull markets naturally flow…

A Looming Decision From The Fed Could Send Gold Soaring

A Looming Decision From The Fed Could Send Gold Soaring

The European Central Bank (ECB)…

Gold Miners Brace For Seasonal Downturn

Gold Miners Brace For Seasonal Downturn

Gold miners have been hammered…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Worst May For US stocks In 9 Years Boosts Gold Prices

Gold bars

Gold jumped out of the gate on Friday, rising more than 1% in heavy volumes as investors seek a safe haven amid a widening trade war unleashed by US President Donald Trump.

Gold for delivery in August, the most active futures contract, reached a high of $1,311.80 an ounce, the highest in seven weeks with 29m ounces changing hands in New York by lunchtime.

CHART: US stock slump to light fire under gold priceTrump's plan to impose a 5% tariff on all Mexican goods to force the country to do more to stem immigration, coupled with a Chinese threat to blacklist foreign companies in retaliation to punitive US tariffs on its exports rattled markets and hurt the dollar.

The S&P 500 index and Dow Jones Industrial Average are on course for the biggest fall for the month of May in nine years.

Gold is seen as a store of value in turbulent times and the price of the metal usually moves in the opposite direction of the US currency. Gold is also finding favour as bond yields in the US fall and a rate cut in the world's largest economy moves from possibility to probability.

A note from Capital Economics, a London-HQed independent research and advisory firm, forecasts safe-haven demand will continue to lift the price of gold this year.

However, we suspect that the main trigger will be a slump in the S&P 500 as the US economy slows, rather than elevated trade tensions.

By Frik Els via Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment