US riots bounce gold into a safe haven

Gold prices rose on Monday as riots in major US cities. Investors have already broken China-U.S. Revolted with ties and raised the demand for safe-heavy metal with further support to the weak dollar.

Spot gold rose 0.8% to $ 1,739.75 an ounce at 0242 GMT. US gold futures closed up 0.1% at $ 1,752.60.

CMC Markets Chief Strategist Michael McCarthy said, “The market sentiment is currently weighing on the unrest in the United States.”

In a wave of outrage in a politically and racially divided nation, protesters in the US have flooded the streets over the death of George Floyd in police custody. Closely packed crowds and protesters not wearing masks have raised fears of a revival of COVID-19, killing more than 101,000 Americans.

China’s state media in Asia and Hong Kong’s government on Sunday vowed to end Hong Kong’s special status by US President Donald Trump if Beijing implements new national security laws on the city. Often used as a safe store of value during political and financial uncertainty.

The SPDR Gold Trust, signaling the holding of the world’s largest gold-backed exchange-traded fund, rose 0.3% to 1,123.14 tonnes on Friday, a seven-year high.

Further supporting gold’s appeal, the dollar index fell 0.4% against its rivals.

Somewhere, silver jumped 2% to $ 18.20 an ounce, its highest level since February 26, slightly back before trading 1.8% higher at $ 18.16.

The UTD Commodity Futures Trading Commission said on Friday that Vetax cut its bullish position in COMEX Gold and increased the silver contract for the week to 26 May.

Palladium rose 0.7% to $ 1,958.25 per ounce, while platinum was down 0.3% to $ 835.56.