Gold Climbs as Hong Kong Protests and US-China Trade Tensions Heighten Risk-off Sentiment in Markets
Gold prices are climbing higher over re-escalation of concerns surrounding the US-China trade deal as Trump’s tariff threat comes back to haunt markets and increase tensions once again. At the time of writing, GOLD is trading at a little above $1,474.
On Tuesday, US President Donald Trump once again threatened to hike tariffs on Chinese imports unless China agreed to sign the interim trade deal with the US. Expectations of a delay or a derailment in progress made so far on the trade war have heightened the safe haven appeal for gold in markets, causing prices to rise.
In addition, US-China relations could get more tensed on account of the ongoing protests in Hong Kong. The US Senate voted unanimously to pass a legislation towards safeguarding human rights in Hong Kong, which drew the ire of the Chinese government.
Violent clashes continue to rage on in Hong Kong between the anti-government protesters and the police, leading to over 1,000 arrests within a day. The market sentiment has plunged towards risk-off causing Asian stock markets to tumble, enhancing the demand for gold among investors and traders.
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