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Gold Hits One-week High As Trade Worries Persist

Gold prices hit over one-week high on Monday as traders continued to fret over U.S.-China trade frictions and weak U.S. data bolstered bets of a U.S. Federal Reserve rate cut.

Spot gold edged up 0.1 percent to $1,285.45 per ounce, after having touched
$1,287.32, its highest level since May 17, earlier in the session. U.S. gold futures were also up 0.1 percent at $1,285.40 an ounce.

The U.S.-China trade war looks more and more like a tech war, as China continues to build its domestic surveillance capabilities, powered by artificial intelligence and lots of data.

The New York Times reported, citing people familiar with the matter that the Trump administration sees China as an economic and geopolitical threat, but added that there are concerns about China’s “extensive surveillance industry.”

China on Friday denounced U.S. Secretary of State Mike Pompeo for fabricating rumors after he said the chief executive of China’s Huawei Technologies Co Ltd was lying about his company’s ties to the Beijing government.

Growth worries also returned to the fore after data showed declining profits for China’s industrial firms in April on slowing demand and manufacturing activity.

U.S. manufacturer growth hit a multiyear low in May, a report showed last week, adding to bets the Federal Reserve will have to come off the sidelines and cut interest rates this year.

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