Gold hits its three-week high in London trading session on Friday. While Spot gold gained 0.4% to $1,735.67 per ounce, having earlier touched its highest since April 23 at $1,737.50, the U.S. gold futures rose 0.3% to $1,746.20.
Global investors rushed for the gold after mixed results coming from China’s economic data as well as the huge upsurge in jobless claims in America. Also, China (second-largest economy in the world) presented a not too good picture of its economic recovery from the COVID-19 pandemic as records showed that China’s industrial production in April increased 3.9% year to year.
While recovery is still forecast in the second half of the year, it won’t come close to regaining the ground it lost this year. British manufacturers also think they will take longer to recover from the economic impact of COVID-19 than just a couple of weeks ago, according to an industry survey.
“It’s been clear, as more economic data is released, that some of the damage that has been done (to the global economy) would take much longer to repair than expected,” said Michael McCarthy, chief strategist at CMC Markets to Reuters News.
(READ MORE: FG begins process to allow CBN buy all golds from local miners)
Gold prices gain are poised for its biggest gain in three weeks, and fueled by signs of a global distressed economy with the rising tensions between the Chinese and Americans.
America’s President, Trump disclosed yesterday the COVID-19 pandemic had paused his January trade deal with China and added he could even cut ties with China.
“Markets are very concerned… Any turning up of the heat between these two nations could be bad news for everyone but good news for gold,” McCarthy said.
