On Wednesday, Gold surged after topping a one-week low in the last session, as rising concerns over United States and China trade tension, cutting risk appetite and growing the appeal of safe-haven bullion.
President Donald Trump said he will increased tariffs on Chinese imports more if he cannot make any steps in trade meetings with Chinese President Xi Jinping at the G20 summit. A Xi spokesperson refused to confirm if President Xi Jinping would meet Trump at the G20 meeting. However, Beijing vowed a tough answer if the U.S. insists on rising trade spats in continuing negotiations.
Spot gold soared 0.5 percent to $1,333.06, after dropping to its lowest since June 3 at $1,319.35 in the past session.
U.S. gold futures increased 0.4 percent at $1,336.60 an ounce.
“Market sentiment this morning is very cautious and risk appetite has started to diminish gently, therefore we see a little bit of buying in gold,” said Benjamin Lu, an analyst with Singapore-based Phillip Futures.
The gold contract for August added close to $70 or almost 5.5 percent. Gaining specially from the growth in United States and Mexican rows as Trump warned Mexico to increase tariffs unless it acted firmly to prevent the flow of illegal drugs and migrants from its side of the border.
“This is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!” President Donald Trump said in a tweet.
Expectations that the Fed Reserve may have to cut rates after May’s fewer-than-expected U.S. jobs data the gold also lifted lately and due to ongoing pressure from Trump, who wants an interest rate surging so that the economy can perform well below his watch and lift his reelection opportunities.
On Tuesday, U.S. President took goal at the central bank again Trump said that the Federal Reserve has increased rates higher and its policy of dwindling its bond portfolio is “ridiculous”.
Gold specialist think gold futures could cut $1,400 if the Federal Reserve issues a dovish policy report after its June 18-19 talks.
Among other metals, silver gained 0.7 percent to $14.80 per ounce.
Meanwhile, the platinum was steady at $813.65 per ounce.
Palladium edged 0.1 percent higher to $1,395.10 per ounce, in striking distance of a six-week high of $1,400.50 move in the last session.