Gold futures are surging to their best levels in more than a month as investors prepare for Chinese retaliatory efforts. Gold further advanced on a lower US dollar and political turmoil in Washington as the US could face a government shutdown.
April gold futures soared $19.60, or 1.48%, to $1,347.00 per ounce at 15:51 GMT on Friday. The yellow metal is poised to settle at its best level since the middle of February. Gold prices are also on track to record a 2.5% weekly gain.
Silver, the sister commodity to gold, is also rallying to finish the trading week. May silver futures rose $0.163, or 0.99%, to $16.55 an ounce. The white metal is getting ready to report a 1.3% weekly jump.
Investors are diving into the
The reports are sending the US dollar lower as the greenback shed 0.33%. The buck will suffer a 0.7% weekly loss, which is a boon for
On Friday, new economic data was released: US
Meanwhile, Washington is in turmoil as President Trump has threatened to veto a $1.3 trillion omnibus spending bill that keeps the doors of Capitol Hill open until September. The president has said the legislation does not help DACA recipients and it does not provide funding for the border wall. Should he cancel the legislation, then he risks facing a government shutdown.
On Thursday, Trump shook up the White House again, replacing former national security adviser Herbert Raymond McMaster with John Bolton.
Earlier this week, the Federal Reserve wrapped up its March Federal Open Market Committee (FOMC) policy meeting. Fed Chair Jerome Powell pulled the trigger on a rate hike and hinted that two increases to interest rates are likely coming this year. Gold is typically sensitive to a
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