Gold Trading at Six-Year Highs as Tariff War Reignites Between US and China

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..

Gold - XAU/USD

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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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