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Gold Poised for Small Weekly Gain Ahead of G7 Summit

June 8, 2018 at 14:51 by Andrew Moran

Gold futures are headed for a small weekly gain ahead of the contentious G7 summit meeting this weekend. The yellow metal is trading relatively flat at the end of the trading week, but there are signs that it might strengthen next week as it stays above the key $1,300 threshold.

August gold futures rose $0.60, or 0.05%, to $1,303.60 per ounce at 14:32 GMT on Friday. Gold prices are on track for a tepid weekly advance of 0.4%, despite being down more than 1% so far this month. Year-to-date, the yellow metal has dipped 1.2%.

Silver, the sister commodity to gold, is sliding to finish off a week of trading. July silver futures tumbled $0.035, or 0.21%, to $16.78 an ounce. The white metal is headed for a weekly jump of about 2.2%.

Precious metals are being kept in check as the US dollar is rallying on Friday. The greenback has surged 0.21% to 93.64, but the buck is in the red for the week by 0.3%. A stronger currency tends to be bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.

Metals investors will be paying close attention to the G7 Summit meeting this weekend. It is already contentious with President Donald Trump feuding with US allies, like Canada, Mexico, and Europe over trade – geopolitical tensions are typically a boon for gold and silver.

Alongside Canadian Prime Minister Justin Trudeau, French President Emmanuel Macron told reporters that the protectionist policies emanating from the US could be grounds for removal from the G7.

The six countries of the G-7 without the United States are a bigger market taken together than the American market. There will be no world hegemony if we know how to organize ourselves. And we do [not] want there to be one.

Meanwhile, President Trump is advocating for Russia to be reinstated in the G7:

They threw Russia out. They should let Russia come back in. We should have Russia at the negotiating table.

In other metal commodities, July copper futures rallied $0.021, or 0.66%, to $3.296 per pound. July platinum futures jumped $4.40, or 0.49%, to $904.70 an ounce. July palladium futures slipped $3.80, or 0.38%, to $1,005.80 per ounce.

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