On Monday, the 26th of August 2019, the precious metal, gold, torrented to more than six-year-peak breaching $1,550 mark in the early Asia-Pacific trading hours, as investors appeared to be seeking safety amid a chorus of uncertainties including a gruelling Sino-US trade spat, a feeble global economy vulnerable to potential recession risk alongside a growing sense of protectionism among a majority of G20 leaders.
Besides, as beforementioned, a ratcheted-up Sino-US trade tension on last Friday (August 23rd) which had witnessed imposing steep tariffs on each other’s product, had weighed on investors’ sentiment during early Asian trading hours on Monday (August 26th), while Spot gold price reached more than six-year-peak to $1,554.56 an ounce, a level never seen since April 2013.
Meanwhile, US gold futures remained almost unchanged on Monday (August 26th) to settle down at $1,537.20 an ounce, while spot gold futures’ prices hit record high in Australian dollar and euro. Besides, referring to a reeling investors’ confidence and little appetite for riskier assets following last Friday’s (August 23rd) rapid acceleration of trade tension between Beijing and Washington, a managing partner of CPM group, Jeffrey Christian said, “There’s a great deal of uncertainty and instability in the global financial markets and economies.
And in that kind of environment, investors are bouncing around so they are buying in to gold and buying out of gold. ”