Gold reaches its highest level in two months as stock markets plummet

Gold prices reached their highest levels in two months on Monday as investors sought to protect themselves from declining global stock markets amid trade tensions between the United States and China.

The price of gold reached $ 1,314.33 troy ounce in the morning, its highest level since March 27, as stock markets fell in Asia and Europe.

Gold, considered a safe haven, is taking advantage of growing fears that a trade dispute between Washington and Beijing will hurt the global economy. The S & P 500 recorded its first monthly fall of the year in May.

The threat of President Donald Trump last week to set tariffs on all imports from Mexico has allowed gold to break the $ 1,300 mark on Friday.

"Mexican tariffs have probably been the straw that broke the camel's back," said badysts at OCBC Bank. "The tariffs imposed on Mexico have also shown that no country is immune to the trade of US arms products to achieve the objectives of the Trump administration," he said. which limits the possibility that the world economy is losing momentum. "

An increase in the price of gold also boosted the actions of gold miners on Monday. Shares of London-listed Centamin, which mines gold in Egypt, rose 8 percent to trade at 95.96 percent.