MTECHTIPS;-Gold Prices Hit Day’s Highs as Trade Tensions Mount

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MTECHTIPS;-Gold Prices Hit Day’s Highs as Trade Tensions Mount

MTECHTIPS-Gold prices rose to the days highs on Wednesday as safe haven demand for bullion was boosted by escalating trade tensions after China announced countermeasures against the latest U.S. tariffs. Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose $6.90 or 0.51% to $1,344.10 a troy ounce by 04:02 AM ET (08:02 AM GMT). Worries that protectionist trade policies from the U.S. and China might result in a trade war boosted gold, amid fears over the impact on global economic growth. China’s commerce ministry announced Wednesday reciprocal 25% tariffs on $50 billion of U.S. goods, including autos and chemicals and said the effective date for the new tariffs would be announced at a later time. The announcement came after the Trump administration late Tuesday announced 25% tariffs on $50 billion of annual imports from China in an attempt to force changes in Beijing’s intellectual property practices. Persistent worries over global trade tensions also weighed on the U.S. dollar. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down 0.16% to 89.71. Investors seek out gold as a store of value during times of political or economic uncertainty, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies

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