· Gold inched up on Friday and was on track for its second monthly gain as deteriorating U.S.-China ties in a world reeling from the coronavirus pandemic rattled investors and fueled demand for the safe-haven metal.
Spot gold was up 0.1% at $1,719.47 per ounce by 0342 GMT. U.S. gold futures rose 0.3% to $1,717.60.
However, the metal was down for the week, having dropped to a two-week low on Wednesday as easing lockdown measures around the world boosted hopes of an economic recovery.
· “Gold remains wedged between potentially positive economic developments that have been dragging prices lower, and a rise in geopolitical tensions with China over Hong Kong,” said Cameron Alexander, an analyst with Refinitiv-owned metals consultancy GFMS.
· Market participants now await the U.S. response to Beijing tightening control over Hong Kong, after China’s parliament approved a national security legislation for the city.
· U.S. President Donald Trump, who has vowed a tough response, will hold a news conference later in the day.
· Worsening U.S.-China relations have further added to fears about a global economic recovery, helping the metal rise 2% so far this month.
· Central banks increasing liquidity in financial markets, low interest rates and rising money supply are bullish for gold in the longer term, Phillip Futures wrote in a note.
· Russia's gold production surges 9%, silver production plunges 11% in 2019
New statistics out of Russia show that gold production surged by 9.26% and silver production dropped by 11.1% on an annual basis in 2019, according to the country's Ministry of Finance.
A total of 343.54 metric tons of gold was mined in 2019, in comparison to 314.42 tons in 2018, the ministry said on its website.
At the same time, silver mine production was down 11.1% on an annual basis in 2019, totaling 996.17 tons, the ministry added.
Until April of this year, Russia has been steadily increasing its central bank gold reserves.
But as the coronavirus outbreak reached Russia, the central bank announced that it was halting all domestic gold purchases for the time being. Prior to 2020, all the newly produced gold was being bought up by the Russian central bank.
As of May 1, Russia's total gold reserves totaled $126 billion, the country’s central bank stated.
In April alone, gold exports by Russian banks rose by 15%, totaling 4.6 tons, Russia’s Interfax reported. This trend has been going on since November of last year. In the past six months, Russian banks exported 17 tons of their gold reserves.
Back in April, Russian banks asked the nation’s central bank to restart its official gold purchases, citing concerns over gold exports amid disruptions in the transportation industry due to the COVID-19 outbreak.
Russia is the third-largest gold producer in the world. And aside from the nation’s own central bank, the country’s top gold buyers are the U.K. and Switzerland.
· Among other metals, silver fell 0.2% to $17.39 an ounce, but was poised for its biggest monthly gain since June 2016.
· Palladium gained 0.3% to $1,937.91 per ounce, but was set for a third straight monthly fall. Platinum declined 0.8% to $831.89, but was on track for a second monthly gain.
Reference: CNBC, Kitco
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