Gold futures settle above 1,300 USD an ounce on safe-haven buying

Source: Xinhua| 2019-05-14 03:54:00|Editor: Liu
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CHICAGO, May 13 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose over 1 percent on Monday, as investors took refuge in haven gold after U.S. equities dropped amid escalating trade frictions between the United States and China.

The most active gold contract for June delivery went up 14.4 dollars, or 1.12 percent, to settle at 1,301.8 dollars per ounce.

China announced on Monday that it will raise the rate of additional tariffs imposed on some of the imported U.S. products from June 1.

China had earlier imposed additional tariffs on 60 billion dollars worth of U.S. imports, the rates of additional tariffs on some of the products will now be increased to 25 percent, 20 percent, and 10 percent, according to a statement by the Customs Tariff Commission of the State Council.

The decision came after the U.S. move to increase tariffs on 200 billion dollars worth of Chinese goods from 10 percent to 25 percent as of May 10.

As of 1845 GMT, the Dow Jones Industrial Average dropped 584.55 points, or 2.25 percent. The S&P 500 Index went down 64.4 points, or 2.24 percent, and the Nasdaq Composite Index was down 238.33 points, or 3.01 percent.

Gold usually moves in opposite directions with the U.S. equities. When the stock markets were on the rise, investors may stop buying safe-haven assets, such as gold.

As for other precious metals, silver for July delivery was down 1.3 cents, or 0.09 percent, to settle at 14.777 dollars per ounce. Platinum for July delivery was down 10.7 dollars, or 1.24 percent, to close at 854.9 dollars per ounce.