Gold rose for a third straight session on Tuesday, the highest settlement since late February, as the financial markets await what will most likely be difficult discussions between President Donald Trump and Chinese President Xi Jinping.
Results from the first quarter show that gold gained 8.6%, based on its most active contract. Often viewed as a safe haven, the precious metal also found a floor ahead of a highly-anticipated employment report due Friday, this could hold further clues for the pace of interest-rate hikes, especially in light of other recent data.
Gold has been profiting not only from the weak U.S. vehicle sales figures in March, which have weighed on sentiment among market participants, but also from falling stock markets and lower bond yields,” said Carsten Fritsch and the commodities team at Commerzbank, in a note.
“What is more, gold ETFs also recorded inflows of four [metric] tons,” Fritsch added
Trump meets with Chinese President Xi Jinping on Thursday and Friday to discuss trade between the two countries . “Considering statements made by President Trump about China’s trade policies, it will be interesting to see if the two presidents can work with each other,” said Gary Wagner, of TheGoldForecast.com. “To that end, their talks could contain the beginnings of a bridge between our two countries, or a further divide. These discussions could culminate into little more than a friendly handshake.”
Gold for June delivery GCM7, +0.62% rose $4.40, or 0.4%, to settle at $1,258.40 an ounce. Over the recently completed first quarter, gold gained 8.6%.based on its most active contract.