Gold Rises on Monday After China Infrastructure News and NK Turmoil

Gold gained Monday, trying for its fourth-straight winning session, and platinum, copper and silver advanced sharply, finding traction after weekend comments from the Chinese leadership about a boost in infrastructure projects and more show of nuclear strength from North Korea.

A weaker-than-expected reading for a regional U.S. manufacturing measure gave gold prices an added push as the data added to other recent reports showing some economic vulnerability.



Gold for June GCM7, +0.51%  rose by $8.30, or 0.7%, to $1,236.10 an ounce. A finish at this level would mark the highest for the yellow metal in nearly two weeks. Gold finished last week less than 0.1% higher after posting losses over the previous two weeks when investors pushed in to riskier assets away from haven gold. And yet Friday’s third advance in a row was a feat last accomplished in mid-April.

Gold was supported in large part as the U.S. dollar index DXY, -0.35%   , which measures the greenback’s value versus euro, yen and four other major currencies, was down 0.2%. DXY rose about 0.7% last week.

Global policy developments were in play after Chinese president Xi Jinping said there will be about $100 billion in fresh financing in support for the “One Belt, One Road” initiative. The plan is China’s effort to link regions via infrastructure projects and recast itself as the protector of globalization.

via MarketWatch

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza