China’s central bank says it won’t let the yuan fall too sharply, but gold longs aren’t taking chances, pushing the yellow metal to new six-year highs as safe-havens remained in play on Tuesday as a hedge to the devaluation and heightened U.S.-China trade war.
Spot gold, reflective of trades in bullion, traded at $1,471.61 per ounce by 2:12 PM ET (18:12 GMT), up $7.72, or 0.5%, as China allowed the yuan to tumble to its weakest level in a decade against the dollar to retaliate against the U.S. president’s plan to impose from Sept. 1 a 10% tariff on hitherto untaxed Chinese imports of $300 billion.
Bullion has gained 2.1% since the week began and hit $1,474.99 on Tuesday, its highest since May 2013.
Gold futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, settled up $7.70, or 0.5%, at $1,484.20. It surged to $1,486.75 earlier, its peak since Aug 2013. December gold has rallied since 1.8% since Friday’s settlement and is up 3.2% this month.
Source : Investing.com