Gold Prices Reached The Highest in 14 Months.
- Trade Magnates Team
- Jun 11, 2019
- 1 min read
Gold prices reached near the highest price in 14 months trading at $1332.25 per ounce following Trump’s announcement not to go ahead with applying tariffs on Mexican imports.
With this performance, Safe haven prices registered the best weekly advance in more than 3 years. Expectations of interest rate cuts by the U.S. Federal Reserve were also cited as a tailwind for the yellow metal.
The U.S. central bank is due to issue its next policy statement on June 19 after its monthly meeting, while Mr. Powell, Fed Chairman, is doing his best to protect the US economy from entering into a recession as a result of the ongoing trade war between the US, China and Mexico.
The ongoing US-China tariff war is raising concerns about the path of future global growth while data out of China showed that it increased its gold reserves for a sixth consecutive month in May. The reserves now stand at 1,916 tonnes, according to a Financial Times report.
Investors remain convinced that further advanced to the precious metal prices is still on the table and expecting prices to reach higher.
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