WASHINGTON (dpa-AFX) - Gold futures edged higher on Friday with traders picking up the safe haven asset amid rising hopes the Fed will cut interest rates sometime soon.
Gold's uptick was also due to rising worries about geopolitical tensions and trade-related issues.
The focus was on G20 summit, and more precisely, on the upcoming meeting between the U.S. President Donald Trump and Chinese President Xi Jinping.
The meeting may not bring about an instant solution to the trade crisis between the two largest economies in the world, but expectations are that the discussions would help in resumption of trade talks.
Gold futures for August ended up $1.70, or 0.1%, at $1,413.70 an ounce, the highest settlement in six years.
Gold futures gained over 7.7% in June, the best monthly returns in about three years. For the week, gold futures added about 1%.
Silver futures for September ended up $0.047, at $15.341 an ounce, while Copper futures for September settled at $2.7135 per pound, down $0.0035 from previous close.
White House economic adviser Larry Kudlow maintained his threat to impose new tariffs on Chinese goods if talks do not end in progress. Kudlow also said there are no preconditions set for the U.S.-China trade meeting.
The clarification came after Wall Street Journal reported Thursday that China President Xi is expected to present the U.S. trade coalition with a set of terms, including the removal of restrictions on the sale of U.S. technology to Huawei before Beijing will settle the trade dispute.
Lingering tensions between the U.S. and Iran, Trump's earlier comments about the security relationship with Japan and his demand that India should withdraw 'very high tariffs' on U.S. goods also boosted appeal for safe-haven bullion.
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