Off The Wire
Gold gains as weaker dollar, U.S. riots lift demand
* Silver jumps to three-month high
* SPDR Gold Trust holdings at fresh 7-year peak on Friday
* Dollar falls to lowest since mid-March
* For an interactive graphic tracking the global coronavirus spread, open tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices)
By K. Sathya Narayanan
June 1 (Reuters) - Gold prices rose on Monday as the dollar weakened and jitters over riots in U.S. cities, as well as rising tensions between Washington and Beijing, boosted demand for the safe-haven metal.
Spot gold was up 0.5% to $1,735.47 per ounce at 0946 GMT, having surged 1% earlier. U.S. gold futures eased 0.2% to $1,748.40.
“Higher tensions between China and U.S. is bringing safe-haven buying. Tensions within the U.S. is not helping the cause, while the dollar is pretty much on its lows,” said Afshin Nabavi, senior vice president at precious metals trader MKS SA.
The dollar fell to its lowest since mid-March, making gold less expensive for holders of other currencies.
China’s state media and the Hong Kong government lashed out on Sunday at U.S. President Donald Trump’s pledge to end Hong Kong’s special status if Beijing imposes new national security laws on the city.
Meanwhile, looting broke out on Sunday in southern California, a tanker truck drove into marchers in Minneapolis and demonstrators clashed with police in Boston and Washington, D.C. as the United States struggled to contain protests over race and policing.
Gold is seen as a safe-haven asset during times of political and economic uncertainty.
On the technical side, “the spot price is now getting close to resistance placed at $1,750. A clear climb above the previous highs ($1,747 on closing and $1,765 intraday) would open space for further rallies,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.3% to 1,123.14 tonnes on Friday, a fresh seven-year high.
Elsewhere, silver rose 1.9% to $18.17 per ounce, having touched its highest since Feb. 25 earlier.
Palladium gained 0.1% to $1,947.10 per ounce, and platinum was steady at $838.40. (Reporting by K. Sathya Narayanan in Bengaluru; Editing by Mark Potter)