Precious Metals: Rising trade tension supported the safe-haven buying – ANZ

Ongoing concerns about global economic growth continue to drive safe-haven demand in precious metals, strategists at ANZ Bank apprise.

Key quotes

“The higher-than-expected rise in initial jobless claims in the US set a sombre mood, with investors piling into US treasuries. The yield on a US 10y bond fell to 0.62%, increasing investor appetite for gold.”

“US President Trump said he doesn’t want to talk to Chinese President Xi, and mused about eliminating the largest trading partnership in the world.”

“Palladium prices rose sharply, despite warnings of significant demand destruction. Russian producer, Nornickel, suggested demand may drop 16% this year, the largest contraction since 2001. The company had been forecasting an increase of 2%.”