• 9 hours Renters Are Striking As COVID Reshapes Real Estate
  • 17 hours Nothing Can Stop The Tesla Boom
  • 1 day 9 Ways The Lockdown Is Playing Out Around The World
  • 2 days WeWork Sues SoftBank For Withdrawing $3 Billion Insider Payoff
  • 2 days Solving Transportation’s Biggest Problem
  • 2 days Big Banks Could Win Big On Fed Small Business Bailout
  • 3 days Trump Increases Pressure On Venezuela
  • 3 days Researchers Create Organic Battery
  • 3 days Gold Is Still A Safe Haven, But Not Very Alluring
  • 4 days China Is Buying Up Billions Of Barrels Of Cheap Crude Oil
  • 4 days Are Gold Stocks Going To Bounce Back?
  • 5 days The Politics Of A Pandemic
  • 6 days What Does CHina’s EV Slowdown Mean For The Battery Metals Sector?
  • 6 days COVID Report Cards Will Brand Businesses Forever
  • 7 days Trump Tweet Sends Oil Soaring 25%
  • 7 days Why The Coronavirus Economic Crash Is Worse Than You Think
  • 8 days Is A Global Currency Necessary?
  • 8 days America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 9 days Trump Wants Another $2 Trillion Economic Intervention
  • 9 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
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