Home Business News Gold prices skyrocket as investors rush into safe-haven assets

Gold prices skyrocket as investors rush into safe-haven assets

by LLB Editor
27th Jul 20 9:21 am

Gold prices surged today as investors rushed into safe-haven assets following an escalation of tensions between the US and China.

Spot gold jumped more than $30 to a new record high of $1,943.93 an ounce this morning, while silver prices are also rallying, up 6.2% at $24.16 an ounce.

The dollar is sliding and fell to its lowest level in a year – because of mounting US-China tensions, fears about the US and global recovery and the expectation that the US Federal Reserve could soften its inflation stance at its meeting on Tuesday and Wednesday, which would allow interest rates to stay low for longer.

Markets in Asia are mixed against this backdrop with the Nikkei (-0.29%) trading down as it catches up with last week’s moves after a 4-day holiday. Elsewhere the Hang Seng (-0.09%), Shanghai Comp (+0.09%) and Asx (+0.09%) are trading flattish while the Kospi (+1.05%) is up.

In FX, the US dollar index is down -0.49%, marking 6 days of continuous declines and at the lowest level since September 2018, while all the G-10 currencies are trading up with Euro at 1.1702 and breaking through another big figure. Meanwhile, futures on the S&P 500 are up +0.47% and spot gold prices are up to a record $1,931.51/oz (+1.55%) this morning with silver trading up +5.92%.

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