Gold prices gain to record the best week since April 2016, oil prices slightly weaker
On Friday gold prices gained in Asia amid concerns surrounding the U.S.-China trade war.
The safe-haven metal surged this week after China devalued its yuan in response to the U.S. threat to impose more tariffs on Chinese goods. The People’s Bank of China set its yuan midpoint weaker than 7 for two days in a row on Thursday and Friday. The level is the lowest since April 2008.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained 0.5% to $1,518.25 a troy ounce by 1:01 AM ET (5:01 GMT). The metal is now on track for its best week since April 2016.
Stock markets were under pressure this week in the face of pending U.S. tariff increases on Chinese products in September, which increased safe-haven demand. There was speculation that the U.S. Federal Reserve will have to cut rates further if the ongoing Sino-U.S. trade war worsens. A lower interest rate benefits the non-yield bullion.
Expectations of the low-rates environment in the U.S. have sent gold on a bullish run that saw it jump roughly 15% so far this year.
Meanwhile, oil prices traded slightly lower on Friday in Asia. U.S. Crude Oil WTI Futures slipped 0.1% to $$52.47 by 12:18 AM ET (04:15 GMT), International Brent Oil Futures dropped 0.2% to $57.27.
Citing a Saudi oil official, Saudi Arabia is planning to maintain its crude oil exports below 7 million barrels per day in August and September.
Upbeat Chinese data were also cited as tailwind for the oil markets, which jumped 2% in the previous session before giving back some of their gains today.