Gold breaches US$3,300 amid rising US-China trade tensions
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The news: Gold prices have extended their record run to breach the USD3,300 per ounce level, as a weaker US dollar and escalating trade tensions between the US and China push investors towards the safe-haven asset.
The numbers: Benchmark gold bullion prices settled at USD3,343.12 ($5,245.76) an ounce in US trading, up 3.48% from the previous close.
The context: The latest rise comes a day after US President Donald Trump ordered an investigation into possible tariffs on all US critical minerals imports, marking another escalation in his dispute with global trade partners and an attempt to pressure China. The latest flare-up of tensions between the world's two largest economies dented sentiment in wider financial markets, sending investors towards safe-haven assets such as gold. The US dollar slipped against its peers to near a three-year low hit last week, making gold more attractive for other currency holders.
Gold has rallied more than 20% this year, supported by tariff disputes, expectations of interest rate cuts and strong central bank buying.
