Gold surges as trade tensions boost safe-haven appeal

Source: Xinhua| 2019-08-24 03:10:51|Editor: Mu Xuequan
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CHICAGO, Aug. 23 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange climbed nearly 2 percent on Friday, as rising trade tensions boosted demand for safe-haven assets.

The most active gold contract for December went up 29.10 U.S. dollars, or 1.93 percent, to settle at 1,537.60 dollars per ounce.

Investors have flocked to safe-haven gold after China announced on Friday that additional tariffs will be imposed on U.S. imports worth about 75 billion U.S. dollars following the newly announced U.S. tariff hikes on Chinese goods.

China has said the imposition of additional tariffs is a forced response to U.S. unilateralism and trade protectionism.

A total of 5,078 U.S. products will be subject to additional tariffs of 10 percent or 5 percent, to be implemented in two batches and take effect on September 1 and December 15 respectively, according to the Customs Tariff Commission of China's State Council.

China will also resume additional tariffs of 25 percent or 5 percent on American-made vehicles and auto parts starting on December 15.

Following the latest development, U.S. stock benchmark indexes, the Dow Jones Industrial Average, S&P 500 and Nasdaq all plunged about two percent, as investors dumped risky equities for gold.

Meanwhile, the U.S. dollar index, a gauge of the greenback against a basket of other major currencies, fell 0.48 percent to 97.70 ahead of the gold's settlement.

When the dollar softens, the dollar-priced gold usually rises as it become less expensive for investors holding other currencies.

As for other precious metals, September silver went up 37.3 cents, or 2.19 percent to close at 17.413 dollars per ounce. The October platinum fell 6.60 dollars, or 0.77 percent, to settle at 855.30 dollars per ounce.