America had been plagued by street protests of late, and righfully so as it reeled after the death of one George Floyd in the hands of Minneapolis policemen. With this social turmoil, it is expected that Gold would see a rise in its value.
But lo, this wasn’t the case. For the month of August, U.S. Gold futures settled down $16.30, or 1%, at $1,734 per ounce on Comex. This was recorded after day 7 of heated protests and riots.
This had raised dire challenges for local government officials, especially those in New York, as it tries to reopen its economy from the coronavirus-led lockdown across all jurisdictions.
Spot gold, dropped by $15.02, or 0.9%, to $1,724.98 by 2:32 PM ET (18:32 GMT).
On the otherhand, stocks on Wall Street rallied. The Dow and S&P 500 had hit three-month peaks.
Head trader at U.S. Global Investors, Michael Matousek, in an interview stated,
“People know they need to be invested in the U.S. equity markets … but they also need that gold exposure because there’s so much uncertainty,”
The immediate direction of the yellow-metal had been a point of concern for Analysts. A number of them presuppose that it will stay between $1,700 and $1,750. Others suggest that it will reach a peak of $1,800.
On Friday, Gold futures settled above $1,700, its first since November 2012. It had gained 2.5% for all of May for a third-straight monthly gain.