Gold Edges Up As US-China Tensions Heat Up

09.07.2020 10:37 (UTC +0)

Gold prices were flat to slightly higher on Thursday as virus worries persisted and relations between the United States and China continued to deteriorate.

Spot gold edged up 0.2 percent to $1,813.32 per ounce, after rising to its highest level since September 2011 at $1,817.71 on Wednesday. U.S. gold futures were up 0.1 percent at $1,822.70 per ounce.

With Covid-19 cases on the rise in 42 states across the United States, investors fear that re-imposition of lockdown measures will hold back any sustained economic recovery.

The United States reported more than 60,000 new Covid-19 cases on Wednesday, the biggest increase ever reported by a country in a single day.

Federal Reserve officials on Wednesday suggested the U.S. recovery may be stalling, raising doubts about its durability.

Meanwhile, the United States is preparing to take additional actions against China, the White House has said, without giving further details.

"I'm not going to get ahead of the president on what our actions on China will be, but you will be hearing about some upcoming actions that pertain to China. So, I can confirm that," White House Press Secretary Kayleigh McEnany said.

Recently, the U.S. deployed two aircraft carriers in the South China Sea with a clear message to Beijing that it doesn't welcome China's belligerence with its neighbors.

Chinese Foreign Ministry, in response, accused the U.S. of trying to create a rift between the regional countries.

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