Gold Price Goes Sideways Amid G-7 Tensions - Gainesville Coins News
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Gold Price Goes Sideways Amid G-7 Tensions

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Gold Price Goes Sideways Amid G-7 Tensions

Friday morning saw spot gold remain steady at about $1,298 per ounce despite growing geopolitical strife over trade.

The silver price rose 7¢ (+0.45%) to $16.75/oz, consolidating its recent gains.

Both platinum and palladium were little changed at $902/oz and $1,008/oz, respectively.

Markets Quiet, Interest Rates Uncertain

Stocks closed mixed yesterday during a difficult session for the tech sector. The S&P 500 ultimately hardly budged.

Traders piled into Treasurys late in the session, sending the 10-year yield down almost five basis points to 2.93%.

Report - interest rates

The 10-year note was down modestly in early trading, pushing the yield to 2.94%.

Yet interest rates are skyrocketing in Turkey. The Turkish central bank hiked its benchmark rate an astonishing 125 basis points this week to try and stave off currency devaluation.

The Federal Reserve's rate hike plans will be the major factor driving markets next week. In addition to the upcoming FOMC meeting, the Bank of Japan (BOJ) and European Central Bank (ECB) each meet next week, as well.

For commodities, crude oil rebounded as much as 2% Thursday but fell slightly when trading opened in New York.

The new Shanghai crude price was up to 472.6 yuan per barrel, or roughly $73.75/bbl.

Precious metal futures remained stuck just above $1,300 per ounce. On the Shanghai Gold Exchange (SGE), gold traded at 268.5 yuan per troy ounce, the equivalent of about $1,303/oz.

Trade Issue Dominates G-7

Investor focus was still trained on the G-7 meeting in Quebec to end the week.

Trade and tariffs have been key sources of tension at the gathering. President Trump has taken an adversarial approach to the talks, which are usually free of such acrimony.

Participants from the EU are especially upset with the Trump administration's expansion of a brewing trade war. The bloc expected to be exempt from the president's plan for heavy tariffs on exports such as aluminum and steel.

Canadian Prime Minister Trudeau and French President Macron each spoke out against the American stance on trade. The White House response was far from friendly.

Trump will be departing early from the meeting in preparation for the Korean summit.

The disagreement dominating the G-7 talks dragged European and U.S. stocks lower Friday morning. The FTSE 100 and CAC 40 each poked 0.1% into the green, however.

Equities were off sharply on Asia's mainland overnight. Japanese indices lost about 0.5%.

Forex markets vacillated on the discouraging news. The dollar index was up 0.3% to 93.7 while the euro slipped by the same proportion to about $1.175.

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

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