Gold reaches its highest level in over 6 years due to risk aversion

(Reuters) – Gold prices hit Tuesday their highest level in more than six years as investors fled riskier badets due to worries over protests in Hong Kong and the collapse of the Argentine currency, fearing a global economic slowdown.

At 5:18 am GMT, spot gold rose 0.3% to $ 1515.56 an ounce, after reaching its highest level since April 2013 at $ 1518.03.

US gold futures rose 0.6% to $ 1,526.90 an ounce.

Hong Kong, the busiest airport in the world, was closed Monday. The demonstrations began in protest against a bill allowing the return of suspects to China for trial, but expanded to include wider calls for democracy.

On the other side of the world, fears of a possible return of interventionist policies have dominated the Argentine market, with President Mauricio Macri having lost a margin higher than expected during the presidential primaries.

These uncertainties, as well as fears of a protracted trade war between China and the United States, shook the financial markets and pushed investors toward safe haven badets.

The gold, along with the Japanese currency and the US Treasuries, is considered a relatively safe investment in times of political and financial uncertainty. The yen held near a seven-month high against the dollar.

For other precious metals, silver rose 1.4% to 17.29 dollars an ounce. It reached its highest level since February 2018 with 17.36 USD.

Platinum rose 1% to 860.75 dollars and palladium 0.8% to 1439.11 ounces.

(Reuters)