Just when it looked like gold's rally was starting to founder, the Federal Reserve and an escalation in the U.S.-China trade fracas have given the metal new life.
Gold, which had been headed for a weekly loss Friday morning, closed at a fresh six-year high after the U.S.-China trade fight intensified and Federal Reserve Chairman Jerome Powell said the U.S. economy faces significant risks from slowing global growth.
As of Saturday, buying 22K gold will put you back by Dh173.75 a gram in the UAE. Likewise for 24K, 21K and 18K. This is a new six-year peak in prices after a relatively stable week after a steady increase.
What happened on Friday?
US President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5% duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat trade war escalation by the world’s two largest economies.
Trump’s move, announced on Twitter, came hours after China unveiled retaliatory tariffs on $75 billion worth of US goods, prompting the president earlier in the day to demand US companies move their operations out of China.
"Starting on October 1st, the $250 billion of goods and products from China, currently being taxed at 25%, will be taxed at 30%," Trump announced on Twitter. He posted the news after markets closed on Friday, so analysts more repurcussions in upcoming week/s.
- Inputs from Bloomberg, Reuters