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Gold prices jumped 2% as investors interpreted the US Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole seminar as moving towards easing monetary policy, while the latest comments from President Donald Trump exacerbated trade tensions with China.
Spot gold prices rose 1.9% to $ 1,527.31 an ounce at the end of trading, after reaching $ 1,529.67, its highest level since August 13, when he had reached his highest level in 15 years, at $ 1,534.31.
US gold futures increased 1.9% to settle at $ 1,537.60 an ounce.
"The fact that he (Powell) has stated that they (the Fed) will behave appropriately to support growth is a factor that will drive up the price of gold." They have two tools the main ones: quantitative easing or reduction, "said Bob Haberkorn, Chief Market Analyst at RJO Futures. Interest rates, which will both increase gold. "
Powell said the US economy was "in a good position," but showed little sign of interest rate cuts at its next meeting. However, he listed a series of economic and geopolitical risks overseen by the Fed, noting that they were related to the trade conflict.
"We should not be surprised if we see the Fed cut its rate by one percentage point over the next 12 months thanks to a new monetary easing program," said Edward Moya, chief analyst. market at Onada.
Powell's speech provoked Trump's angry reaction on Twitter, asking whether the Fed's president was a bigger "enemy" than Chinese President Xi Jinping.
Trump also angered China by ordering US companies to consider ceasing operations in the world's second-largest economy, significantly reducing inventories and generating more gold flows as a safe haven.
This took place after China unveiled $ 75 billion worth of revenge on US goods.
Gold has risen by about 8% so far this month and by about 19% so far this year, a fourth consecutive week of gains.
Among the other precious metals, silver rose 2.6% to 17.45 dollars an ounce, while platinum rose 0.18% to 858.80 dollars an ounce .
Palladium fell 1.6% to $ 1,453.03 an ounce, but the metal used in automotive exhaust cleaners recorded a third consecutive week of hike, with a rise of 39%. about 0.9%.
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