Gold Prices Gain as Escalating Trade War Sends Traders Fleeing from Equities
Gold prices rose on Monday in Asia as investors seek safe-haven from trade war fears.
Gold Futures for December delivery were up 1% at $1,552.90 on the Comex division of the New York Mercantile Exchangem by 1:22 AM ET (05:22 GMT).
The gains came amid China’s announcement of new tariffs on U.S. products and President Donald Trump’s demand that U.S. companies pull out of the republic. The U.S. also raised existing tariffs on $250 billion worth of Chinese goods to 30% from 25% as of October.
In addition, a new round of tariffs on $300 billion in Chinese goods will be taxed at 15%, up from the current 10%.
Meanwhile, in a speech at the Jackson Hole event that ended on Friday, U.S. Federal Reserve Chairman Jerome Powell said the U.S. economy is in a "favorable place," and the Fed will "act as appropriate" to keep the current economic expansion on track.
His comments, however, were largely overshadowed by the trade news.
The Fed cut rates last month for the first time in a decade, dropping 25 basis points. Markets are expecting the central bank to do a similar reduction in September.
On the data front, the U.S. will releases data on GDP and durable goods this week, while China will report China industrial profits. Hong Kong retail sales and trade data are due later in the week.