Gold hits 6-year high as trade and growth concerns boost demand
Gold prices jumped more than 1 percent to their highest level in more than six years on Monday, with the escalation of the trade war between the United States and China as well as global growth fears that pushed investors to safe haven assets.
Spot gold rose 1.1 percent to $ 1,456.51 an ounce by 0725 GMT, after hitting its highest level since May 2013 at $ 1,459.47 earlier in the session.
Gold futures in the United States rose 0.8 percent to 1468.50 dollars an ounce.
On Friday, China said it would respond to US President Donald Trump’s decision to impose a 10 percent surcharge on Chinese imports worth $ 300 billion.
The fees may force the Federal Reserve to raise interest rates more than it had hoped would be necessary to protect the US economy from trade policy risks.
The yellow metal was supported by the dollar index touching its lowest level in a week, reducing the cost of gold to investors from holders of currencies other than the dollar.
For other precious metals, silver rose 1.9 percent to $ 16.51 an ounce, while platinum rose 1.4 percent to $ 854.33.
Palladium rose 1 percent to $ 1,420.60 an ounce. Source
