Gold Breaches $1,550 Mark for First Time in Over 6 Years
NEW YORK (Reuters) - Gold prices jumped more than 1% to surpass the $1,550 per ounce mark for the first time in more than six years on Monday as investors flocked to safe haven assets driven by the heightened U.S.-China trade dispute.
Spot gold was up 0.3% at $1,530.20 per ounce as of 1309 GMT, after hitting its highest since April 2013, at $1,554.56 earlier in the session.
U.S. gold futures were steady at $1,538.90.
"This is all about the trade tensions and the related risk of global slowdown or even a global recession that is driving investors to safe-havens,” said Julius Baer analyst Carsten Menke.
"There is doubt in markets about these trade talks, so benefit of doubt or the leap of faith is not provided by financial markets anymore when it comes to the trade topic, which will be supportive for gold.”
Washington announced last week an additional 5& duty on $550 billion in targeted Chinese goods, hours after China had unveiled retaliatory tariffs on $75 billion worth of U.S. products.
Spot gold was up 0.3% at $1,530.20 per ounce as of 1309 GMT, after hitting its highest since April 2013, at $1,554.56 earlier in the session.
U.S. gold futures were steady at $1,538.90.
"This is all about the trade tensions and the related risk of global slowdown or even a global recession that is driving investors to safe-havens,” said Julius Baer analyst Carsten Menke.
"There is doubt in markets about these trade talks, so benefit of doubt or the leap of faith is not provided by financial markets anymore when it comes to the trade topic, which will be supportive for gold.”
Washington announced last week an additional 5& duty on $550 billion in targeted Chinese goods, hours after China had unveiled retaliatory tariffs on $75 billion worth of U.S. products.