There was an increase in gold prices on Friday. There were doubts that the highly anticipated meeting between the United States and China would ease trade tensions, driving bullion to its best month in three-years.
Gold has risen nearly 8.3% so far this month, on track for its biggest monthly percentage gain since June 2016. Spot gold is up 0.3% at $1,413.67. With nearly 1.2% gain so far this week, the metal is also set to post its sixth consecutive weekly rise.
Larry Kudlow, White House economic advisor, states that U.S. President Donald Trump has agreed to no preconditions for his high-stakes meeting with China’s President Xi Jinping. He’s maintaining his threat to impose new tariffs on Chinese goods.
The leaders of the Group of 20 countries meet on Friday and Saturday in Osaka, Japan. A meeting between Trump and Xi is scheduled for Saturday.
Gold prices gained more than $80 in the last two weeks, especially on expectations that there will be at least a quarter percentage point reduction in July.
Uncertainty around growth and trade risks suggests more strategic positions are likely to be built.
Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.3% to 795.80 tonnes on Thursday, from Wednesday. However, holdings have still gained more than 7% this month.