The gains came amid China‘s announcement of new tariffs on U.S. products and President Donald Trump’s demand for US companies to withdraw from the republic. The US also raised existing tariffs on $ 250 billion of Chinese goods to 30% from 25% since October.
Gold prices rose on Monday in Asia as investors seek safe haven for fear of a trade war.
Gold futures for December delivery rose 1% to $ 1.552.90 in the New York New York Commerce’s Comex division from 1:22 AM ET.
Moreover, 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, US Federal Reserve Chairman Jerome Powell said the US economy is in a “favorable place”, and the Fed will “act as appropriate” to keep in expansion the economic expansion.
However, his comments were overshadowed by 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 make a similar cut in September.
On the data front, the US will release GDP and durable goods data this week, while China will report industrial gains in China. Retail sales and Hong Kong trade data are due later in the week./Investing.com