Forex Marketz Daily Forex News – Fully Markets Update
Gold futures, during the Asian trade session on Wednesday, hit a six year high price point. Traders are looking for safe haven asset classes like the yellow metal as the trade war between the United States and China heats up with no near term end in sight.
As of 3:20 am GMT, the widely traded spot gold futures contract was trading higher. This contract surged 0.9 percent to trade at $1,486.41 per ounce. Earlier in the trade session, the bullion hit its highest price point since April 2013 at $1,489.76 per ounce.
U.S. gold futures, for front end delivery, also jumped higher. This contract added 0.9 percent, as well, to fetch $1,497.90 an ounce.
The spot silver futures contract also leaped higher during the Asian trade session. Silver added 1.7 percent to trade at its highest price point since June 2018 at $16.73 per ounce.
Gold Traders Watch the Trade War between the U.S. and China
China and the United States, the world’s two largest economies, are fighting an escalating trade war since last July. The trade war resumed after a brief lull. Last week, after U.S. President Donald Trump abruptly announced new tariffs of ten percent against $300 billion of Chinese imports into the U.S.
China responded by ending all American agricultural imports and they allowed their currency to weaken past a key and all-important level at $7. This then prompted the U.S. Treasury Department to label China as a currency manipulator. This morning, the People’s Bank of China set the mid-point at $6.9996.
This morning, the Reserve Bank of New Zealand stunned the financial markets when they announced an aggressive 50 basis point rate cut that brought their overnight cash rate (OCR) down from 1.5 percent to one percent with the possibility of another 25 basis point rate cut before the end of the year.
