Gold prices climbed yesterday after US President Donald Trump threatened to raise tariffs on Chinese goods, escalating Sino-US trade tensions, which prompted investors to sell riskier assets and boost safe-haven bullion.
Spot gold was up 0,2 percent at $1,281.63 per ounce, as of 0930 GMT. US gold futures also gained 0,2 percent to $1,283.20 an ounce.
US President Donald Trump on Sunday announced he would hike tariffs on $200 billion worth of Chinese goods this week. He also said he would target a further $325 billion of Chinese goods with 25 percent tariffs “shortly”, essentially covering all products imported into the United States from China.
“We are seeing the markets reacting to uncertainty about trade talks. It is creating some nervousness in the markets. The dollar is a tad stronger, countering some of the potential moves we would have seen otherwise in gold,” said Ole Hansen, commodity strategist at Saxo Bank.
Trump’s comments dented global shares and oil prices, while boosting the yen, which like the yellow metal, is considered a safe haven during times of a geopolitical or global economic turmoil.
“The hedge fund community is extremely confused, flipping long and short positions. $1,290 is the key level for gold, and if prices break above that we could see quite an addition on the long side,” Hansen said. — Reuters.