Gold price up again with high demand from European private investors
The gold price has hit its highest intraday level in over a month, reaching $1,263.7 earlier yesterday on the COMEX.
Boosts came from a soft dollar, and geopolitical events, such as the St. Petersburg blast on Monday, which has killed 14 so far.
The rise has boosted mining stocks, with the VanEck Vectors gold miner exchange traded fund up by 73 basis points, according to CNBC news. Mining indicators usually only move when the gold price looks solid for some time, owing to the long-term nature of expansion, which relies on certainty of returns.
Gold futures also rose, a positive result for three sessions straight, and their highest settlement since February, according to Marketwatch. Gold for delivery in June was at $1,257.70 at 10:12am today. The rise in futures is attributable to the prospective meeting between Donald Trump and Xi Jinping, as reported on Monday. CNBC also noted the gold price had recorded gains of around 8 percent in the first quarter on renewed demand.
CityAM reported that Gold demand among private investors has extended even further to achieve its longest run of private demand in five years, bringing this run to eight months.
This stretch on Bullionvault’s online gold market has not been seen since June 2012, with the eurozone being a notable source of demand, with France, the Netherlands and Germany all being key players — all of whom have had, or will have, elections with controversial candidates standing.
CityAM went on to quote Adrian Ash, head of research at Bullionvault, as saying “the Eurozone’s busy election calendar is spurring precautionary demand across the currency union, especially in northern member states”.
In tech news, the Financial Times has reported that a North America-based startup called Ulula is allowing “artisanal” miners in South America to find out gold prices by “oro”, gold in Spanish, to a short code for free. By taking up informational technology, local gold miners have increased access to price information, meaning they can tell when buyers are trying to undervalue their gold.
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