24 Jun Gold continues to shine as prices exceed $1,400 per ounce mark
Gold prices are heading towards the near six-year highs reached in the previous trading session last week, as tensions between the US and Iran continue to rise against a backdrop of a weakening global economy.
Spot gold climbed by 0.5% to US$1,405 per ounce in Monday trading, heading for a fifth straight session of upward movement, while US gold futures rose by 0.7% to $1,410 per ounce. Gold prices reached US$1,410.78 on Friday – their highest since September 2013.
Meanwhile, holdings of the world’s largest gold-backed ETF, SPDR Gold Trust, rose 4.6% on Friday from a day earlier, its biggest one-day percentage gain since September 2008.
“The weakness of the US dollar, gold’s technical picture and interest from investors themselves have become self-sustaining factors, especially after the massive inflows into gold exchange-traded funds,” said Commerzbank analyst Eugen Weinberg.
Weinberg added that continuing tensions between the US and Iran also supported gold, along with dovish signals from global central banks including the US Federal Reserve and the European Central Bank.
The market will now turn towards the outcome of discussions between the US and China at the G20 summit in Japan later this week. The world’s two largest economic powers are locked in a trade dispute that has also helped gold’s investment appeal.