Gold prices on Thursday, June 14, hit a two-week high as investors fretted over weak Chinese data and U.S.-China trade frictions, though the precious metal’s upside was capped by a slightly more hawkish Federal
Reserve.
The dollar edged back against the euro as speculation grows the European Central Bank (ECB) will signal an end date for its vast stimulus programme at its policy meeting, giving back all its gains following Wednesday’s Fed meeting.
As widely expected, the Fed lifted key overnight borrowing costs by a quarter percentage point. It also projected two more rate increases by the end of this year, compared to one
previously.
Spot gold rose 0.5 percent to $1,304.65 per ounce at 1020 GMT. It earlier hit a high of $1,303.58 an ounce, its best since May 31. U.S. gold futures for August delivery rose 0.6 percent to $1,308.90 per ounce.
In the wider markets, global shares slipped amid worries over a more hawkish Fed and ECB, with investors concerned also about surprisingly weak Chinese data and U.S. threats to impose tariffs on billions of dollars in Chinese goods.
Weaker equities tend to support gold, seen as a store of value in times of economic and political turmoil.
“Reports that President Trump was preparing to put tariffs on billions of dollars of Chinese goods as soon as Friday raised concerns in the market that economic growth would be impacted.
This saw some safe-haven buying emerge,” ANZ said in a note. U.S. President Donald Trump will meet his top trade advisers on Thursday to decide whether to activate threatened tariffs on Chinese goods.
In other precious metals, silver climbed 0.7 percent to $17.12 an ounce, having earlier hit $17.15 an ounce, its highest since April 20.
Platinum was 0.9 percent higher at $906.80 an ounce, while palladium gained 0.8 percent to $1,016.90 per
ounce.
