Gold prices increased for the second consecutive week

Gold rose in most trading sessions last week, marking its second consecutive week of price increases, as investors are looking for safe assets amid a dim global economic outlook.

World gold prices increased in all four of the five trading sessions this week, after a disappointing report released last weekend on the US labor market in May 2016 reduced speculation that the US Federal Reserve (Fed) would soon raise interest rates.

However, in a speech on June 6 in Philadelphia, Fed Chair Janet Yellen said the Fed may raise interest rates in the context of positive economic factors "overpowering" negative factors. This caused gold prices to fall in the only session of the week on June 7.

However, the precious metals market quickly recovered thanks to the decline in US government bond interest rates and world stock markets, bringing gold prices to 2-3 week "peaks".

Investor sentiment is also affected by the UK referendum, scheduled to take place on June 23, on the country's membership in the European Union (EU).

Concerns that the UK will leave the EU (Brexit) will increase instability in European markets, pushing global stock markets down, thereby contributing to increasing the attractiveness of safe haven channels such as gold.

According to ICBC Standard Bank analyst Tom Kendall, gold will remain attractive in the coming weeks, with the main reasons being the continued weakness of the USD and the possibility that the Fed will not rush to raise interest rates soon in the context of the US economy not growing as strongly as expected.

As of 1:08 a.m. on June 11 (Vietnam time), at the US COMEX exchange, spot gold prices increased by 0.4% to $1,273.21/ounce, after climbing to the highest level since May 18 at $1,277.70/ounce. Meanwhile, the price of gold for August 2016 delivery also increased by 0.3% to $1,275.90/ounce, the highest closing level in more than three weeks. Overall for the week, the price of gold for futures delivery increased by 2.7%.

Also in this session, spot silver price also hit a three-and-a-half week “peak” of 17.37 USD/ounce before retreating and closing at 17.30 USD/ounce. This is the strongest weekly increase of this metal since April.

On June 9, the amount of gold held by SPDR Gold Trust, the world's largest gold exchange-traded fund, increased 0.7% to 887.38 tons, the highest level since October 2013.

According to Vietnamplus.vn