Global trade tensions and US rate-cut hopes boost gold
Bullion could rise even further if the US-China trade war and ‘the UK political game of thrones’ keep uncertainty levels high
Bengaluru — Gold hit a more than one-week peak on Monday as trade tensions between the US and China lifted appetite for assets seen as a haven from risk, while weak US economic data boosted hopes for a rate cut from the Federal Reserve. Spot gold inched up 0.1% to $1,285.56 an ounce by 11.47am GMT. The metal touched $1,287.32 earlier in the session, its highest since May 17. US gold futures were 0.1% higher at $1,285.30 an ounce. US President Donald Trump said on Monday he was “not yet ready” to make a deal with China, hinting that the world’s biggest economies are far from a trade agreement. “Some of the comments made by Trump over the trade talks with China were not overly optimistic,” ING analyst Warren Patterson said. “The continued uncertainty around trade is helping to support prices ... that uncertainty is increasing demand for safe-haven assets.” China on Friday denounced US secretary of state Mike Pompeo for fabricating rumours after he said the CEO of China’s Huawei was ly...
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