By Barani Krishnan
Investing.com - Gold prices finished above $1,700 an ounce for the first time in nearly 8 years on Friday, and also higher for a third straight month, as renewed U.S. tensions with China sent risk-averse buyers steadily toward the safe-haven.
Remarks by Federal Reserve Chair Jay Powell that full U.S. economic recovery from the Covid-19 could not be attained until people felt confidence to resume living like before the pandemic also helped boost gold prices on Friday.
“Gold has everything going for it except strong physical demand,” said Ed Moya, analyst at online trading platform OANDA. “Gold should remain supported in the short-term as central bank buying is strong, prospects for further global stimulus seems very likely, and as friction remains high between the world’s two largest economies.”
U.S. gold futures for June settled up $23.60, or 1.4%, at $1,736.90 per ounce. It was the first settlement above $1,700 for gold futures since November 2012. For all of May, gold futures rose just shy of $43, or 2.5%, for its third straight monthly gain.
Spot gold, which tracks real-time trades in bullion, was up $13.82, or 0.8%, at $1,733.04 by 3:45 PM ET (19:45 GMT).
President Donald Trump, who spent most of May trying to blame China for the global spread of the Covid-19, said on Friday The United States is rescinding a number of special considerations for Hong Kong in retaliation against Beijing’s move to pass new security laws against the South Chinese island territory.