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Gold Rises for 4th Quarter in Row Amid Trade War Fears

Gold Rises for 4th Quarter in Row Amid Trade War Fears

Tuesday, 01 October 2019 08:06 AM

Gold is up for a fourth straight quarter, the longest run in eight years, as slowing growth, trade tensions and central-bank easing buoy demand for havens.

Gold bullion has advanced 5.4% since the end of June as investors added more than 200 tons to exchange-traded funds.

Gold rallied this year as central banks cut rates amid the U.S.-China trade war, which is hurting global growth. Geopolitical tensions and the possibility President Donald Trump will face impeachment have added to the uncertainty.

“There are a lot of moving parts in terms of U.S.- China trade deals” and concerns about the U.K.’s exit from the European Union that are fueling haven demand for gold, Phil Streible, senior commodity strategist at R.J. O’Brien & Associates, said by phone from Chicago. “There are also too many geopolitical events that could easily go worse or improve.”

A dollar gauge climbed after the U.S. issued a partial -- and qualified -- denial that it was discussing new limits on Chinese access to American finance. Speculation is mounting that the statement was made to encourage Beijing to move closer to signing a deal with Washington, Streible said.

Gold futures are up for a fourth straight quarter, the longest winning streak since 2011.

Among other metals, palladium extended its record-breaking rally.

Palladium climbed to a fresh record of $1,701.93 an ounce on Monday, before heading lower. The metal has gained more than 8% this quarter, with top miner MMC Norilsk Nickel PJSC seeing a widening deficit.

Silver and platinum also rose this quarter.

This week, investors will focus on a slew of U.S. data, including a monthly jobs report, as well as speeches from Federal Reserve officials such as Charles Evans and John Williams for clues on the U.S. economy and monetary policy. Signs of slowing growth and speculation of quantitative easing have fueled optimism on the outlook for gold.

Investors are also looking to see how short-term capital markets in the U.S. navigate the end of this quarter after signs of a liquidity shortage prompted the Fed to step in as rates spiked.

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Gold is up for a fourth straight quarter, the longest run in eight years, as slowing growth, trade tensions and central-bank easing buoy demand for havens.
gold, prices, rise, quarterly
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2019-06-01
Tuesday, 01 October 2019 08:06 AM
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