The unrelenting trade dispute between the United States and China affected the prices of gold. The yellow metal's prices shot up to a near six-year high on Wednesday, 7th August. Spot gold rose by as much as 0.7 per cent to $1,484.49 an ounce.
Meanwhile, gold futures in the USA rose to about $1,497, an increase of about 0.9 per cent. The rise in prices of gold comes after the American president Donald Trump announced the imposition of more levies on Chinese products and goods.
Following Trump's announcement, worries about global trade scenario escalated. Earlier, after the two countries' heads had met during the sidelines of the G20 Summit in Osaka in June and had promised to sit down for trade talks, the matter looked to have stabilised.
Furthermore, after Trump's latest decision, China devalued its currency from the set benchmark of seven per dollar which raised more criticism from the US administration regarding China's currency manipulation. Speaking to the media, DailyFx's currency analyst Ilya Spivak cautioned, "Trade wars are the catalyst for the latest gains.
Increasingly fiery rhetoric out of Washington and Beijing is fuelling worries that the conflict will amount to a longer-term headwind for global growth." Among other precious metals, silver's price rose by around 1.7 per cent to about $17 an ounce.
Platinum's price also increased by about 0.7 per cent to around $854 an ounce. Palladium's prices, however, crashed marginally by 0.1 per cent to around $1,466 an ounce.