On Friday, the 21st of June 2019, spot gold future prices had breached its six-year peak, as on Wednesday (June 19th), the US Federal Reserve had signaled an imminent interest rate cut as early as next month and investors were found rushing on to safe-haven assets likes of gold, Japanese Yen and Swiss Franc.
In point of fact, while this report was being prepared, early morning European trading hours, the precious metal had been swinging slightly below $1400-level after breaching its six-year high at $1411.13 an ounce, a level last seen back in August 26th, 2013.
Spot gold prices had added 0.4 percent today (June 21st), and so far, it had witnessed a massive breakout of 4.1 percent this week, its best intra-week gain since February 1st 2016. Latest upstream momentum of Spot gold was almost entirely a “flight-to-safety” response of the currency and commodity traders, as Sino-US trade dispute still had every possibility to worsen further, while Fed’s latest response of rate cut to boost up a slowing US economy and to offset risks of a battle against China over tariffs had added to investors’ optimism over a massive scale American dollar sell-off, while more and more investors had been putting their money on safe-haven assets such as Gold, Yen and Swiss Franc ahead of a high-stake Trump-Xi meeting on Japan later this month.
Aside from the massive rollout of gold gains, Japanese yen had added 1.18 percent this week so far and hovering near its six-month peak, while Swiss Franc had posted a weekly gain of 1.59 percent so far and residing at its seven-month peak.
Meanwhile, UK crude had added 3.48 percent so far this week, while US crude cruised over 8.33 percent and posted its best intra-week gain since the week ended on April 9th 2018, as geo-political tensions over Iran-issue had reignited possibilities of a critical supply chain disruption and perhaps a Washington-Tehran military confrontation ahead.