Thanks to the US Fed and rising tensions in the Middle East over oil ships, Comex gold futures ended the week at more than $US1,400 an ounce for the first time in nearly six years.
In Australian dollars, it was more $A2,033, another high – this time an all-time record close. Comex future hit a day’s peak of $US1,415 or more than $A2,050.
The most-active Comex contract, settled at $US1,400.10 an ounce and then rose to $US1,403 an ounce in after-hours dealings.
Prices finished at their highest level since September 3, 2013, according to FactSet data and it was the second day in a row that gold traded at or above the $US1,400 mark since 2013.
The trigger was, of course, the Middle East tensions in and around the Gulf of Oman and the Straits of Hormuz between Iran and the US and the Fed’s more obvious dovish stance on the direction of US interest rates which are now clearly heading lower.
That helped weaken the US dollar while the safe haven demand following the tanker attacks boosted demand for greenbacks.
For the week, gold climbed 4.1% and is up more than 9% year to date (and just under that in June so far with the week to go).
Comex July silver had a different fate – falling 20.2 cents, or 1.3%, to $US15.29 an ounce, after seeing its highest finish since late March on Thursday.
Friday saw the flash update on the health of US manufacturing – IHS Markit said its first survey for June dropped to 50.1 in June, the lowest reading since September 2009.
Earlier in the week, European Central Bank President Mario Draghi indicated the ECB could start another round of help (quantitative easing) if the eurozone economy weakens further, while the Bank of England’s Monetary Policy Committee also signaled a readiness to increase stimulus as the US economy continues to be battered by the Brexit row and change of Prime Minister.
Elsewhere, Comex July copper dipped 0.3% to $US2.705 a pound on Friday, with prices up 2.9% for the week. July platinum added 0.7% to $US811 an ounce—ending 0.8% higher for the week, while September palladium closed up 1.3% to $US1,499.60 an ounce, up 2.6% for the week.
