Gold built on last week’s gains on Monday rising 1.5% in heavy volume as investors seek a safe haven amid a widening trade war unleashed by US President Donald Trump.
Gold for delivery in August, the most active futures contract, reached a high of $1,333 an ounce, the highest 10 weeks with over 33m ounces changing hands in New York by early afternoon.
Trump’s plan to impose a 5% tariff on all Mexican goods, Chinese adding tariffs on $60 billion worth of US goods over the weekend coupled with Beijing’s threat to blacklist foreign companies in retaliation to punitive US levies are rattling markets and hurting the dollar.
Gold is seen as a store of value in turbulent times and the price of the metal usually moves in the opposite direction of the US currency. Gold is also finding investors’ favour as bond yields in the US fall and a rate cut in the world’s largest economy moves from possibility to probability…Full Story