Amid investors’ demand for safe haven, gold prices settled near a six-year high on Tuesday, reaching $1461.51 an ounce in spot trade and $1474.40 an ounce in US contracts futures.
Silver settled at $16.39 an ounce, while platinum rose 0.2% to $854.85.
According to Reuters, this coincides with investors’ appetite for safe haven after the United States has designated China as a currency manipulator, raising a long-running trade war between the world’s two largest economies.
The US Treasury Secretary, Steven Mnuchin said yesterday that the US government decided that China is manipulating with its currency and will consult with the International Monetary Fund (IMF) to eliminate unfair competition from Beijing’s latest moves.
The move came after China allowed its yuan to drop below the important level of seven yuan against the dollar for the first time in more than a decade after Washington’s decision to impose a 10% tariff on imports from China worth $300bn, ending a month-long truce in the trade war.
The Dollar index fell to a two-week low in support of the yellow metal, while the longest-term US Treasuries recorded the longest decline in 14 months.