Gold to Close Best Month Since 2016; Palladium Jumps to 3-month highs
Gold and other metals are trading positive on the last day of the week as investors are nervous ahead of the well-waited meeting between Trump and Xi. Some risk aversion is hurting the dollar, giving power to gold buyers.
Investors are also focused on the end of the month and the quarter. They are trading in month-end rebalancing trades as they want to book profits to be included in their books. On Thursday, some profit taking was identified and Friday is not the exception as today will be the latest trading day of the month.
So, be aware of divergences that could be signaling profit taking and end-month rebalancing.
Gold to close green its sixth consecutive week and perform the best month since 2016
Gold is trading positive on Friday, however, the unit is losing some ground in the latest hours as the market is not confident about a resolution in the trade war.
Currently, XAU/USD is trading at 1,413.65, 0.26% positive on Friday. Technical indicators suggest that a consolidation phase is undergoing for the yellow metal.
The bullion is green on the week, the month and the quarter that are closing today. XAU/USD is ready to close its sixth positive week in a row, this time with slightly over 1.0% weekly gains.
In the month, gold is closing its best month since 2016 with over 8.0% gains. It is logging its second consecutive month of gains. On the quarter, XAU/USD recovered itself from early losses, and it is posting near 9.5% gains in the last three months.
According to experts, gold has been fueled by risk aversion due to the trade war, economic growth concerns in the United States, and geopolitical tensions in the middle east. At the top of it, the Federal Reserve hinted a possible rate cut in its meeting of July, giving extra power to the XAU/USD.
Metal prices report for June 28
Silver is trading down for the fourth consecutive day as investors are closing positions ahead of the end of the month. However, the metal is posting its first monthly gain since January. Currently, silver is trading 0.10% negative at 15.25.
Palladium is down on Friday, but earlier in the day it jumped to trade at highs since March 26 at 1,565.50. XPD/USD is closing its fourth consecutive week of gains and its best month since November 2016 with a 16.25% gain in June.
Copper is ready to close its first positive month since February as the mineral managed to post three weeks of gains in a row that took the unit from 2.6125 to test the 2.7450 area. On Friday, XCU/USD remains inside the range between 2.700 and 2.730 it has been trading in the last days. Copper is 0.20% negative on Friday at 2.7120.
Platinum is posting small gains on Friday as the unit is trading 0.30% positive at 816.00. XPT/USD is closing its second week of benefits and a month of recoveries after the big declined performed in May.