}); Gold surges toward biggest monthly gain in three years as US and China brace for G20 meet - Educational Carriers
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    Gold surges toward biggest monthly gain in three years as US and China brace for G20 meet

    Gold surges toward biggest monthly gain in three years as US and China brace for G20 meet


    Gold surges toward biggest monthly gain in three years as US and China brace for G20 meet


    GOLD prices are surging towards their biggest monthly gain in three years as the United States and China prepare to showdown at the G20 summit in Japan.

    Spot gold has steadily increased in value this month, with analysts suggesting investors are flocking to bullion as fears for the global economy continue to fester while the increasingly bitter US-China trade spat rumbles on. Gold has risen 8.3 percent so far this month and is on course for its best month since June 2016. As of 1.41pm BST, the price of gold was worth $1,413.46 an ounce, according to Bullion By Post. With nearly more than 1.0 percent gained so far this week, the metal is also set to post its sixth consecutive weekly rise.
    Investors will be keeping a close eye on the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping this weekend.
    White House economic adviser Larry Kudlow said US President Donald Trump is maintaining his threat to impose new tariffs on Chinese goods.
    The leaders of the Group of 20 countries meet on Friday and Saturday in Osaka, Japan, with a meeting between Trump and Xi scheduled for Saturday.
    When trade tensions weigh on equity markets, analysts note how the appeal of safe-haven bullion is boosted.

    Gold surges toward biggest monthly gain in three years as US and China brace for G20 meet


    Quantitative Commodity Research analyst Peter Fertig said: “Doubts about the success of the meeting between the two leaders have been weighing on risky assets; that is positive for gold.”
    “There have been signals from the recent Federal Open Market Committee on rate cuts.
    “Real yields on government bonds have been falling, which is positive for precious metals along with the weakening US dollar.”
    Mr Fertig added the outlook for gold “looks positive from the fundamental side”.
    Gold prices have gained more than $80 in the last two weeks, partly on expectations that there will be at least a quarter percentage point reduction in July by the Fed.

    Gold surges toward biggest monthly gain in three years as US and China brace for G20 meet


    UBS analysts raised their three-month price target to $1,430 from $1,380.
    They said in a note: “The sustained decline in rates is a key factor(for gold), particularly as the Fed shifts to a more dovish stance.
    “Uncertainty around growth and trade risks suggests more strategic positions are likely to be built.”
    Silver inched down 0.1 percent to $15.24 per ounce, on track for its first monthly gain in five.
    Palladium fell 0.9 percent to $1,537.20 an ounce.
    However, the auto-catalyst metal has risen more than 16 percent so far this month, its biggest monthly percentage gain since November 2016.
    Platinum was up 0.3 percent at $815.32.

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