Gold reached a record high, breaking through the $2,850 level in early trading as the US dollar’s position was affected by the fall in US Treasury bond yields.
The trade war between the United States and China is becoming more lively and has sparked high support for the safe-haven asset gold in the market.
At 9.15 am, the price of gold was at $2,845.30, up 0.10% since it opened in early trading on Wednesday in the Asian session before continuing to rise to surpass the $2,850.00 level.
Geopolitical issues remain the main driver of the yellow metal.
However, President Donald Trump postponed the implementation of tariffs on Mexico and Canada. However, the 10% tariff on China remains in place and has triggered the latest response.
China has imposed tariffs on certain products such as coal, Liquefied Natural Gas (LNG), crude oil, farm equipment and electric trucks imported from the United States.
In addition, they also decided to impose controls on the export of metals for the construction of electronic devices.
The trade war between the US and China has weighed on the US dollar, dragging its index below the 108-point mark.
Looking at economic policy sentiment, the slightly hawkish remarks by Federal Reserve (Fed) officials could provide an obstacle to the strengthening of gold.
San Francisco Fed President Mary Daly said the Fed's job will be difficult on the direction of inflation and added that the US economy is in a good place.
Now, the central bank is in a strong position while waiting for the impact of the tariffs to be implemented.
