Gold shines amid brutal market sell-off

Share it with your friends Like

Thanks! Share it with your friends!

Close

Gold prices climb after Fed comments amid a flight to safety. With CNBC’s Joe Kernen and the Fast Money traders, Guy Adami, Tim Seymour, Karen Finerman and Steve Grasso.

Gold rose on Friday as fears regarding the resurgence of coronavirus infections and grim economic outlook by the U.S. Federal Reserve boosted demand for bullion, leading the metal towards its biggest weekly gain since early-April.

Spot gold gained 0.3% to $1,732.91 per ounce, and has jumped about 2.8% so far this week, which could be its biggest gain since the week of April 10. U.S. gold futures eased 0.1% to $1,738.60.

“One of the reasons has been the statement form the FOMC and the testimony of the (Fed Chair) Jerome Powell, painting a darker picture of the U.S. economy,” said Quantitative Commodity Research analyst Peter Fertig. Also, “there is talk about second wave especially after cases of new infections of the virus have risen again in some countries. A warning which many people ignored.”

A slump in global shares extended to its fourth day as worries that new virus infections could stunt the pace of the economic recovery, while the dollar was on track to record its fourth week of declines.

Earlier this week, Fed policymakers projected the U.S. economy to shrink 6.5% in 2020. Data showed that Britain’s economy shrank by 20.4% in April due to the virus-induced lockdown.

“A lot of data is telling us how bad things are now,” OANDA analyst Craig Erlam said, adding, the markets have priced in the short term impact while they are still unclear about the longer term consequences.

Gold is used as a safe haven during times of economic uncertainty.

Elsewhere, palladium rose 1.4% to $1,947.37 per ounce, while silver declined 0.8% to $17.57. Platinum climbed 1.4% to $822.22, but was set for its biggest weekly fall since end-April.

For access to live and exclusive video from CNBC subscribe to CNBC PRO:
https://cnb.cx/2JdMwO7

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

#CNBC
#CNBC TV

Comments

Cauli Jutsu says:

Buy bitcoin and gold

Micheal Bergstrom says:

Another great withdrawals today!! Really appreciate what you’ve done for me, you’re the best and I promise to spread your good work thanks you mr David scott

Sarafina M says:

Making more than $12,000 in 3 days on trading, forex has made me realize how lucky I am to be part of the revolution. All thanks to Mr David Scott

Rui M says:

God damn, this host is awful. I swear there is not one time i saw him and I didnt think about that. Arrogant.

William Wade says:

Gold shouldn’t be a hedge it should be an insurance policy.

Kopeesh says:

I'm sold on the idea. Thanks for video. This article started my search. Good read – https://www.channelchek.com/news-channel/Gold_is_the_New_Green

John F says:

make you wonder whats going to happen to dollar, given what Fed said …

Infinity T says:

Silver also crashed. I am in net loss because of silver long position right now.

Felix Frost says:

Prefer gold streamers, at least they grow even if gold prices crash and go horizontal and it’s a lot safer then gold miners unless it’s a really really decent mine in the construction phase.

thomas 71 says:

Not sure how restaurants will handle beef shortages!

zaxx19 says:

Brutal? 30% of this is nonsensical froth, unreal. Going to see an investment property tomorrow….jump on these rates and get a 15-22% ROI as a landlord.

Juan Palomeque says:

My miners ready to make some good profits 🚀🚀🚀🚀

john carioscia says:

If gold was in a true bull market, it would've been gone months ago, the same for silver, neither can sustain a rally. In these turbulent times, no way the powers that be will let gold take off to new highs.If the market craps out, the gold price and stocks will go down with the market.

Singularity - says:

Gold is a hedge against uncertainty which we are in right now.

USD doesn't look good considering 26 trillions national debt, 40 million unemployed and pandemic is on going.

Is there any good news?

Jean Chung says:

What happened to Melissa?

ECR KCCM says:

I bought stocks in Vietnam. They're cheap and the market is good ! They're also sustainable grow their economy. Zero death in virus pandemic and no social distancing.

Keshav Pogalla says:

What were today’s final trad

Karl Schubert says:

You cannot eat gold. Instead you need rice, powdered milk, water, canned foods, and your freezer full, with a gasoline inverter generator as an backup power supply. Gold wont protect you either from these riots. Instead you need your own AR and several high cap mags and a ballistic vest. If all you have is gold then you will be dead soon.

dmora says:

Why is that dude wearing a mask on a virtual conf call?

Danielakasmart says:

They must be referring to Physical gold because gold stock got hammered with the market

Comments are disabled for this post.