After posting a steep loss in November, gold is reasserting itself as December opens. Bullion added to the biggest gain in more than a month as tensions between the U.S. and China flared up again and Washington picked trade fights in Europe and South America, hurting appetite for risk.
The haven surged on Tuesday after President Donald Trump doused optimism that there'd be a quick trade deal with Beijing and said he's fine with equities declining. Traders also braced for retaliation from China after the U.S. House of Representatives approved legislation that would impose sanctions on Chinese officials over rights abuses against Muslim minorities.
Spot gold rose as much as 0.4% to $1,484.09 an ounce -- climbing for the fourth time in the past five sessions -- and was at $1,483.32 at 7:45 a.m. in London. Prices advanced 1% on Tuesday, the most since Oct. 31., and ended at a four-week high. So far this year, it’s up 16%.
Source : Bloomberg