Bullion Market has Risen by about 1.7% so Far This Month

Bullion Market has risen by about 1.7% so far this month and 1.6% for the week. “People are doing fear trade now and running towards gold,” said Michael Matousek, head trader at U.S. Global Investors. He noted investors were unsure of what Trump planned to do.

U.S. gold futures settled up 1.9% at $1,311.1.

Gold climbed to a 7 week high on Friday (31/May/2019) and was headed for its first monthly gain in four months, as investors sought the safe haven investment after U.S. President Donald Trump threatened tariffs on imports from Mexico, which fed fears of a global downturn. “That tells you need to have higher allocation to gold in your portfolios.”

Mexico’s president on Friday urged Trump to back down from threats to impose tariffs on its exports to the United States, in a dispute over migration that could create a major economic shock for Mexico.

Read More : MCX Gold Price Prediction – Above 31820 Level Expected Target 32220 — 32380 – Neal Bhai Reports

Wall Street’s main equity indexes fell sharply, hit by fears that Trump’s threat could prove the trigger that pushes the world’s largest economy into recession. [.N]

U.S. carmakers and manufacturers were among the worst hit, having built vehicles in Mexico for years, taking advantage of its cheap labour, trade deals and proximity to the United States.

“The dollar index is still in the 98-area, which is normally a headwind for gold but because of the extreme stock tumbling, it seems to be ignoring the normal headwind,” said George Gero, managing director at RBC Wealth Management.

“Gold is probably going to stay in this $1300 level area as long as the sell-off (in equities) continues.”

The dollar index, tracking the greenback against a basket of six currencies, was down 0.3%, but was on track for a fourth month of gains. [USD/]

Last Weekly Update : MCX Gold June Weekly Report & Recommendation – Neal Bhai

Meanwhile, expectations of a cut in interest rates by the U.S. Federal Reserve increased after recent weak economic readings from the U.S. added to concerns raised by the prolonged U.S.-China trade dispute.

Lower interest rates would support gold because they reduce the opportunity cost of holding non-yielding bullion.

Elsewhere, concerns in the auto sector rubbed off on palladium prices which marked its worst day since May 15.

Silver rose 0.3% to $14.56 an ounce but looked poised to register a fourth consecutive monthly loss.

The emissions reducing auto-catalyst metal slipped 2.5% to $1,333.01 per ounce and was down about 3.9% for the month.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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