Gold prices flat after hitting 6-year highs on escalating U.S.-China trade war

Tensions between China and the U.S. began to rise again last week after U.S. President Donald Trump imposed new tariffs on Chinese goods. On Monday, China allowed the yuan to fall to its weakest level in a decade against the dollar and requested that its state-owned companies halt imports of U.S. agricultural products.

Trump tweeted overnight that China’s move was clearly “currency manipulation,” while a Treasury statement said the People’s Bank of China “has extensive experience manipulating its currency and remains prepared to do so on an ongoing basis.”

The safe-haven Gold attracted safe-haven demand and reached as high as $1,481.75 on Monday following the latest trade news, its highest level since September 2013.

The gains came as all three major indices on the Wall Street closed down more than 2%. Asian stocks also traded in the red today, with China’s Shanghai Composite and the Shenzhen Component down almost 3% earlier in the day.

Gold prices were little changed on Tuesday in Asia after hitting new six-year highs in the previously session amid escalating Sino-U.S. trade tensions.

Gold futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, were little changed at $1,475.90 by 12:54 AM ET (04:54 GMT).