A week in gold - Precious metal posts weekly gain amid weak equity markets
New York (Apr 9) The week saw gold finish higher as traders look for a safe haven with the precious metal amid weak stock markets and uninspiring corporate earnings.
Futures for June delivery finished 0.51% higher or US$6.3 higher at US$1,243 showing the strength of the metal continues amid the wider sense of general unease about the global economy.
One source at commodity trader and gold specialist Kitco was quoted in reports saying the gains were supported by worries over the US economy and the world in general and he could see the commodity price heading further north.
US stocks finished Friday to the good after mixed performances in the days prior, up 0.20% to 17,576.
Gold was also buoyed last week by inflows into trading mechanism called exchange traded funds (ETFs ) and the European Central Bank keeping options open for future monetary policy.
Minutes released yesterday showed the Central Bank's policy makers were divided over new measures to stimulate the economy of then region, which included the cut to interest rates to a new record low.
Also in focus as the week ended in the UK was the quarterly trade deficit in goods with the rest of the EU hit a fresh high amid record imports from the EU bloc.
And in February the balance of trade in goods rose 20% more in February, reaching a record deficit of £12.0 billion, however gold played a part in reducing that deficit by £0.5bn through a net import of gold into London's vaults.
It was the first net inflow since October last year and the largest since February in 2015.
Earlier in the week, gold had been under pressure as markets waited for the latest US Federal Reserve meeting minutes.
In the press conference that followed the meeting, she indicated that instead of four interest rate rises this year, there would only be two but since then hawkish comments from other Fed members have confused the picture.
One thing that had been consistent throughout recent months has been the addition to their holdings of gold by the world’s central banks.
Source: Proactive-Investors
