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Gold Cracks $2,000 Barrier On China/U.S. Tensions

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Gold Cracks $2,000 Barrier On China/U.S. Tensions

Gold prices spiked on Tuesday and the dollar teetered near milestone lows as the U.S. stimulus stalemate continued and tensions between the United States and China escalated.

Spot gold rose $22 or 1.11 percent to $2,005.60 per ounce, while U.S. gold futures were up 0.78 percent at $2,014.35.

The dollar extended its decline into a fifth day as yields on U.S. Treasuries ticked lower on concerns about the pace of recovery in the world’s largest economy.

The political impasse holding up U.S. fiscal stimulus and the new restrictions on Huawei Technologies Co. aimed at cutting the Chinese company’s access to commercially available chips also boosted the yellow metal’s safe-haven appeal.

The Trump administration announced on Monday it will further tighten restrictions on Huawei Technologies in a bid to limit the company’s access to electronic components.

“We don’t want their equipment in the United States because they spy on us,” President Donald Trump said.

Meanwhile, the minutes of the U.S. Federal Reserve’s last policy meeting will be out on Wednesday, with investors looking for any clues about an anticipated shift in the policy outlook.

The material has been provided by InstaForex Company – www.instaforex.com