The precious metal gold is trading at the highest level in six years at the start of a new week after both US and China announced a fresh round of tariffs on each other’s imports. At the time of writing, GOLD is trading at $1,500.

Gold climbed to a high of $1,554 after China announced retaliatory tariffs on $75 billion worth of US goods and US followed suit with yet another round of 5% additional duty on $550 billion worth of Chinese imports. This caused a tumble in US stock markets on Friday and today, Asian stock markets have also fallen sharply.

The safe haven appeal of gold remains high as markets worry about further escalation of the US-China trade war, and its potential impact on global economic growth. Gold’s rally is also powered by a sudden weakness in the US dollar, which slipped by 0.5% after the announcement of tariffs.

Gold is expected to continue trading bullish for some time until the trade dispute between the two world leaders progresses in the right direction towards a trade deal, instead of escalating further.