MUMBAI/BENGALURU Physical gold discounts in India widened to their biggest in five months this week as an upsurge in local prices dampened purchases, while China and Singapore saw demand rise from investors looking to hedge against a global slowdown.
* China May industrial output growth weakest in 17 years
(Updates prices, adds comments and details)
* GRAPHIC - 2019 asset returns: http://tmsnrt.rs/2jvdmXl
(Corrects final paragraph of June 7 story to say palladium prices were trading around $1,362.39 an ounce, not $801.50)
* Speculators raised net longs in gold in week to June
* Gold up 2.3% so far this week
* U.S. jobs data due at 1230 GMT
* Platinum on track for first weekly gain in 7 weeks
* Silver set to post biggest weekly rise in over 4 months
By Arijit Bose
June 7 Gold prices steadied on Friday, but
remained on course for their biggest weekly gain since March
2018, after rising expectations for a U.S. rate cut and concerns
over trade tussles boosted demand for safe-haven bullion.
However, having failed earlier this week to breach its 2019
high of $1,346.73, analysts expect the metal to consolidate
until there is fresh impetus.
Spot gold was steady at $1,335.35 per ounce at 1153
GMT, while U.S. gold futures were down 0.2% at
"We have had quite a move higher earlier this week, but we
are moving towards levels where the market will struggle to go
much higher," ING analyst Warren Patterson said.
Gold has rallied in a short span of time, having gained
about 2.3% this week.
"Overall sentiment is still fairly supportive for the gold
market," Patterson added, attributing the recent rally to a
two-pronged U.S. trade spat with Mexico and China, and hopes for
an interest rate cut by the U.S. Federal Reserve.
The United States and Mexico concluded their second day of
talks on trade and migration on Thursday and markets rebounded
on optimism a deal could be close. However, it remains unclear
whether Mexican pledges to curb migration flows will be enough
to persuade Washington to postpone tariffs.
U.S. President Donald Trump said he would decide whether to
carry out his threat to hit Beijing with tariffs on at least
$300 billion in Chinese goods after a meeting of leaders of the
world's largest economies late this month.
Gold's appeal as a safe-haven investment is bolstered in
times of geopolitical uncertainty.
"Gold is likely to stay muted through the rest of the day
before the release of the non-farm payrolls. Investors want to
see the impact on the U.S. jobs market before reassessing the
current pessimism," Howie Lee, an economist at OCBC Bank, said.
U.S. non-farm payrolls data at 1230 GMT will provide clues
on the trajectory of interest rates.
Meanwhile, New York Fed President John Williams on Thursday
acknowledged the impact of trade and global growth concerns on
business investment, but said he was keeping an open mind on
Among other metals, silver rose 0.4% to $14.91 per
ounce, on track for its biggest weekly increase since late
Platinum edged 0.2% lower to $801.40 an ounce. The
metal was still headed for its first weekly gain in seven.
Palladium dipped 0.2% to $1,348.65 an ounce.
(Reporting by Arijit Bose in Bengaluru
Editing by Mark Potter and Dale Hudson)
* Gold may consolidate after a strong run in a short time
* Inactive gold players getting involved again - UBS
June 6 Gold rose on Thursday, drawing closer to
its highest level this year on increased expectations of a U.S.
rate cut, even as some investors locked in profits from
bullion's recent rally.
Gold prices pared earlier gains on Wednesday, having jumped to their highest in 15 weeks as nagging fears about global trade and expectations of a U.S. interest rate cut encouraged investors to flock toward bullion.