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Bloomberg
Gold futures rallied above $1,500 an ounce on sustained demand for the traditional haven as the US-China trade war festers, global growth slows and central banks around the world ease monetary policy.
The metal advanced 2.6 percent an ounce on Comex to highest since 2013. The move extends this year’s climb to 18 percent, with gains underpin-ned by inflows into exchange-traded funds and central bank purchases. China’s central bank expanded its gold reserves for an eighth straight month in July.
Gold has been one of the chief beneficiaries of the turmoil in global financial markets as Washington and Beij- ing spar over trade. In recent days, Trump administration threatened fresh tariffs against Chinese goods, the yuan was allowed to sink, and the US branded China a currency manipulator. The stand-off has boosted the odds of more easing from the Federal Reserve. Mounting “growth worries,†prompted Goldman Sachs Group Inc to predict prices will climb to $1,600 an ounce over the next six months.
“Gold is serving its traditional role as a safe-haven asset,†said Wayne Gordon,
executive director for commodities and foreign exchange at UBS Group AG’s wealth management unit.