Gold reaches its highest level in 6 years, as the demand for safe haven assets increases

Union

Gold ingots

Gold prices climbed 1% Wednesday to their highest level in more than six years in the absence of any sign of a retreat from the China-US trade war, which boosted investor appetite for safe haven badets.

At 07:18 GMT, spot gold rose 1.1% to $ 1,490.57 ounce, its highest level since April 2013.

Futures on US gold rose 1.2% to $ 1,501.50 an ounce.

The trade dispute between the world's two largest economies has quickly escalated in recent days when US President Donald Trump announced that he would impose additional tariffs on imports from China.

China reacted Monday by allowing its currency to fall below seven yuan for a dollar, a morally important level that has pushed Washington to clbadify Beijing as a currency manipulator.

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At the same time, White House economic adviser Larry Kudlow said the Trump government wanted to continue trade talks with China and was still considering hosting a Chinese delegation in September.

Goldman Sachs however indicated that he no longer expected a trade deal before the US presidential election of November 2020, while Morgan Stanley warned that the exchange of customs duties between both countries could plunge the global economy into recession by the middle of next year.

Other precious metals have also increased. Silver rose 1.8% to $ 16.74 ounce, its highest level since last June.