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 4/5 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 could raise interest rates as positive economic factors were “overpowering” negative factors. This caused gold 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 for 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 havens 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 COMEX exchange in the US, the spot gold price increased by 0.4% to 1,273.21 USD/ounce, after climbing to its highest level since May 18 at 1,277.70 USD/ounce. Meanwhile, the price of gold for August 2016 delivery also increased by 0.3% to 1,275.90 USD/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 the session, spot silver prices also hit a three-and-a-half-week high of $17.37 an ounce before retreating to close at $17.30 an ounce. This was the metal’s strongest weekly gain 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