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Gold futures hit a nine-month high and silver hit a seven-year high.
Jul 23,2020 08:31CST
Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM: COMEX gold futures surged to a nine-year high on Wednesday as rising tensions between China and the United States stimulated safe-haven demand, while silver followed gold's rise to a nearly seven-year high on hopes of a recovery in industrial demand.

Comex August gold futures rose $21.20, or 1.2%, to settle at $1865.1 an ounce, the highest level for the most actively traded contract since September 2011, at 13:30 in New York.

The intraday record for the most actively traded gold contract was $1923.70 an ounce on Sept. 6, 2011, and a record settlement price of $1891.90 on Aug. 22, 2011.

"Gold prices are accelerating, mainly because of geopolitical tensions with China," said EdwardMoya, a senior market analyst at OANDA. There seems to be no sign of an end to this escalation of tensions. As the world's two largest countries continue to fight, market sentiment will take a hit. "

Chinese Foreign Ministry spokesman Wang Wenbin said at a regular press conference on July 22 that on 21 July, the US side suddenly asked the Chinese side to close the Chinese Consulate General in Houston, which was a political provocation unilaterally initiated by the US side against the Chinese side. It is a serious violation of international law and basic norms of international relations, a serious violation of the relevant provisions of the Sino-US consular treaty, and deliberate sabotage of Sino-US relations. The Chinese side strongly condemns it. The Chinese side urges the United States to immediately reverse the relevant erroneous decision. Otherwise, China will certainly make a proper and necessary response.

Low interest rates and a wave of stimulus measures designed to ease the economic hit by the epidemic have pushed gold prices up about 23 per cent so far this year.

After rising on news of U.S.-China relations, the dollar index resumed its decline, falling 0.2% to 94.939 at the end of the day, falling as low as 94.827, the lowest since March.

September silver futures rose 7.4 per cent, or $1.587, to settle at $23.144 an ounce, the highest close for the most actively traded contract since September 2013, a day after recording a more than six-year high.

Silver has risen more than 17 per cent so far this week, which some analysts see as the start of a bull market driven by low interest rates, a recovery in investment demand, production disruptions and a recovery in industrial consumption.

"Silver has some 'safe-haven' properties of gold, but in essence, silver is more leveraged to global growth and manufacturing recovery," Huaqi Research said in the report. "

Huaqi added that the rebound in global manufacturing PMIs, particularly in China, had accelerated silver's superior performance over gold this quarter.

Platinum futures rose $38.50 in October to settle at $957.4 an ounce.

September palladium futures rose 80 cents to settle at $2229.00 an ounce.

In addition, COMEX9 copper for monthly delivery closed down 3.35 cents at $2.9245 a pound.

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