The gold price edged up on Friday (June 23), as political uncertainty hit the market again. The metalclimbed to a one-week high, supported by worriesabout US President Donald Trump, North Korea’s rocket engine testing and Brexit negotiations.
Despite itspositive performance, gold’s price gains were somewhat limited by increasing concernthat the US Federal Reservewill raise interest rates again later this year. Last week, the Fed decided to hike rates by a quarter point, a move that was highly expected by the markets.
Political noise out of Washington regarding Trump’s ties with Russia is unlikely to provide lasting support to gold while an escalation of the geopolitical tensions with North Korea is a bullish wild card, Julius Baer Gruppe (VTX:BAER) analysts said in a note.
Similarly,Danske Bank (CPH:DANSKE) analyst Jens Pederson commented, [t]he broad story is the tug of war between the Fed, which seems determined to push on with monetary tightening and reducing its balance sheet and political uncertainty.
A weaker dollar also helped the gold price this week, as a softer greenback makes commodities priced in US dollars cheaper for buyers using weaker currencies.As of 1:00 p.m. EST on Friday, the gold price was at $1,255.30 per ounce.
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Looking over to silver, the metal wason track for itsfirst weekly gain in three weeks on Friday, also supported by a weaker US dollar and concerns about global stability.As of 1:00 p.m. EST on Friday, the white metal was changing hands at $16.68 per ounce.
Palladium was up 0.8 percent on Friday, trading at $877.2 per ounce. It is rapidlyclosing the price gap on platinum, whichwas up 0.3 percent for the week at$924.2 per ounce.