Gold prices rose 1.3 percent on Wednesday to the highest level
in more than six years in the absence of any signs of easing tense in the trade
war between the two largest economies, which continued to trigger safety
demand.
As of 10:14 GMT, spot gold soared to a new high at $1495.47 per
ounce, marking the highest level since April 2013.
The trade war escalated between the two largest economies after
the U.S president Donald Trump imposed more tariffs on Chinese imports.
The Chinese side responded On Monday by allowing its
currency to fall below seven yuan to the dollar, a morally significant level,
prompting Washington to classify Beijing as a currency manipulator.
Larry Kudlow, White House economic adviser, said that the
administration of U.S President wants to continue trade talks with the Chinese
side as they are planning to host in September a Chinese delegator.
A member of the Federal Reserve said that the most suitable
action right now is to “wait and see” for the upcoming data to
determine whether to cut the interest rates again or not in next month’s
meeting.
Both American bond yields and dollar would come under
pressure because of U.S low interest rate, while should lead in the end to
higher demand on the non-yielding bullions.
The dollar index rose about 0.10 percent to 97.532, following
its rebound the previous session from a two-week low of 96.98.
SPDR Gold Trust, the world's largest gold-backed investment
fund, rose 0.21 percent to 836.92 tones on Tuesday.
Regarding other precious metals, silver was up by 2.35 percent
at $16.83 per ounce, the highest level since June last year.
Platinum
segmented 0.88 percent to $860.65 per ounce and palladium lost some of its
gains as it traded at $1,423.90 per ounce.