Secure housing gold was eroded by the demand for secure housing between the U.S.-China intelligent war and the war on the stock markets.
Gold prices gained almost 1% on Wednesday in Asia amid the ongoing Sino-US trade war.
On Wednesday, the People’s Bank of China set the mid-point reference for the yuan at 6,9996.
Tensions between the two sides intensified amid the US president’s decision last week to impose a 10% tariff on $ 300 billion of Chinese imports from September 1.
The PBOC said in a statement earlier in the day that “the United States does not accept the facts and unreasonably puts China under the label of ‘currency manipulators’, which is conduct that harms others and themselves.”
The statement came after the US labeled China a “currency manipulator” following the People’s Bank of China’s decision to allow the yuan to fall below 7 to the dollar on Monday.
Some also believe that the continuing trade war increased the chances of being eased by the US Federal Reserve, which further supports gold prices as lower interest rates increase the appeal of non-interest bearing assets./Investing.com