Despite today’s losses, yellow metal gained support this week amid the escalating trade war between the US and China. U.S. President Donald Trump threatened to impose from September 1 a 10% tariff on hitherto unchecked Chinese imports of $ 300 billion last week.
Global stocks gained today after the People’s Bank of China set the daily reference rate of the yuan at 7,0039 per dollar on Thursday. The Chinese currency broke the 7th leading level this week, but its fixing earlier had not. While Thursday’s daily lows were at their lowest level since 2008, they were stronger than expected, according to forecasts compiled by Bloomberg and Reuters.
Gold prices plummeted in Asia on Thursday as global stock markets recovered to a level stronger than expected on the Chinese yuan.
The PBOC, China’s central bank, then reportedly devalued the yuan in retaliation for Trump’s newly-planned tariff, sending an already gold market to early value as investors turned to secure housing assets as protection against economic uncertainties. and political./Investing.com