Gold prices rose on Monday in Asia amid escalating Sino-U.S. trade dispute, while political concerns in Hong Kong also spurred safe-haven demand.
Gold futures for December delivery, traded on the Com ex division of the New York Mercantile Exchange were up 0.5% at $1,464.20 by 1:20 AM ET (05:20 GMT).
“Gold is certainly benefiting from the global concerns about the outlook for growth, and central banks are likely to maintain their accommodation stance, so safe-havens like gold are in demand,” said Michael McCarthy, chief market strategist at CMC Markets, in a CNBC report.
“Trade tensions between the U.S. and China is an important factor, the potential for escalation is very high… we might not get what markets are fearing, but it is all adding to the real concerns about the outlook for growth assets,” McCarthy added.
Last week, U.S. President Donald Trump unexpectedly announced additional tariffs on $300 billion worth of Chinese imports.
China has vowed to fight back, according to local reports, which did not give any further details.
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