Gold gains as trade tensions lift safe haven appetite

By: |
Published: August 6, 2019 7:14:00 AM

Gold priced in sterling soared to a record high on Monday, spurred by fear of a disorderly British exit from the European Union amidst trade tensions.

On Monday, gold surged 2% to its highest level in more than six years. (File photo)On Monday, gold surged 2% to its highest level in more than six years. (File photo)

Gold prices continued to rise on Tuesday as the protracted trade war between the United States and China intensified after Washington designated Beijing a currency manipulator, prompting a flight towards safe-haven assets.

FUNDAMENTALS
* Spot gold rose 0.2% to $1,465.91 per ounce as of 0122 GMT.
* On Monday, gold surged 2% to its highest level in more than six years.
* U.S. gold futures rose 0.3% to $1,480.90 an ounce.
* The U.S. Treasury Department said on Monday it had determined for the first time since 1994 that China was manipulating its currency, and that Washington would engage the International Monetary Fund to eliminate unfair competition from Beijing.
* The U.S. action comes after China allowed its yuan to weaken past the key 7-per-dollar level on Monday for the first time in more than a decade, following Trump’s decision to impose 10% tariffs on $300 billion of Chinese imports, ending a month-long trade truce.
* The move also pushed the dollar down against the yen and the euro, while U.S. stock futures fell on worries the trade conflict with China would hurt U.S. economic growth and corporate profits.
* MSCI’s All Country World index, which tracks shares in 47 countries, extended last week’s slide and has slumped 2.5% to a two-month low on Monday.
* Gold priced in sterling soared to a record high on Monday, spurred by fear of a disorderly British exit from the European Union amidst trade tensions.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.53% to 835.16 tonnes on Monday from 830.76 tonnes on Friday.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.