Investing.com - Gold prices rose to one-month highs on Friday as economic and political uncertainty underpinned safe haven demand for the precious metal.
Gold for June delivery closed up 0.82% at $1,266.65 on the Comex division of the New York Mercantile Exchange. For the week, the precious metal was up 1.16%.
Gold remained higher even as the dollar firmed up after data showing that the U.S. economy slowed less than initially thought in the first three months of the year.
Gross domestic product grew at an annual rate of 1.2% in the three months to March, the Commerce Department said, up from an initial estimate of 0.7%.
It was still the weakest expansion since the first three months of 2016, but economists think growth is likely to rebound sharply in the current quarter.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 97.33 late Friday after touching a one-week high of 97.47 earlier.
Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures, which are denominated in the U.S. currency, will rise.
Demand for gold continued to be underpinned as expectations for fiscal stimulus under the Trump administration have faded amid political turmoil in Washington.
Investor sentiment has been hit by fears that the U.S. political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms.
Gold is used as an alternative investment during times of political and financial uncertainty.
Elsewhere in precious metals trading, silver rose 0.92% to $17.35 a troy ounce late Friday, while copper was down 1.17% to $2.65 a pound as the downgrade of China’s sovereign debt rating continued to weigh.
Platinum rose 0.95% to $961.95 a troy ounce, while palladium put on 2.6% to trade at $789.02 a troy ounce.
In the week ahead, traders will focus on Friday’s U.S. employment report for further signs of the Fed’s likely rate hike trajectory through the end of the year.
In the euro zone, investors will await monthly inflation data to assess the timing of when the European Central Bank may start unwinding its massive asset purchase program.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 29
Financial markets in the UK and the U.S. will be closed for holidays.
ECB President Mario Draghi is to testify about the economy and monetary developments before the Economic and Monetary Affairs Committee, in Brussels.
Tuesday, May 30
Financial markets in China will be closed for a holiday.
Australia is to release data on building approvals.
Germany is to produce preliminary data on inflation.
The U.S. is to report on personal income and expenditure along with data on consumer confidence.
Wednesday, May 31
The Reserve Bank of New Zealand is to publish its financial stability report.
China is to release official figures on manufacturing and service sector activity.
Germany is to report on retail sales.
The UK is to release figures on bank lending.
The euro zone is to publish preliminary data on inflation.
Canada is to release data on economic growth.
The U.S. is to report on pending home sales and business activity in the Chicago region.
Thursday, June 1
Australia is to release data on private capital expenditure and retail sales.
China is to publish its Caixin services PMI.
The UK is to release its manufacturing PMI.
The U.S. is to release the ADP nonfarm payrolls report and the weekly report on initial jobless claims, while the Institute for Supply Management is to release its non-manufacturing PMI.
Friday, June 2
The UK is to release its construction PMI.
Both Canada and the U.S. are to release trade data and the U.S. is to round up the week with the non-farm payrolls report for May.