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Gold Futures Rise to Over 6 Years High on Safe Haven Buying

Gold futures on the COMEX division of the New York Mercantile Exchange rose to highest in over 6 years, as investors turned to safe haven buying on concerns about rising U.S.-China trade tensions as well as a weaker U.S. dollar.

The most active gold contract for December delivery added 26.5 U.S. dollars, or 1.73 percent, to close at 1,555.9 dollars per ounce.

The latest round of tariff hikes between the United States and China took effect on Sept. 1.

China on Monday announced that it had filed a case at the World Trade Organization against the United States following its implementation of the additional 15-percent tariffs imposed on 300 billion U.S. dollars worth of Chinese imports on Sept. 1.

The tariffs imposed by the United States severely violated the consensus reached by the two heads of state in Osaka, a statement released by the Ministry of Commerce said, adding that China is extremely dissatisfied with and resolutely opposes the tariffs.

The U.S. dollar index, which measures the buck against six rivals, went down 0.09 percent to 98.95 as of 1730 GMT.

Gold usually moves in opposite directions with the U.S. dollar, which means if the dollar goes strong, gold futures will fall as gold, priced in U.S. dollar, becomes expensive for investors using other currencies.

As for other precious metals, silver for December delivery was up 89.5 cents, or 4.88 percent to close at 19.237 dollars per ounce. Platinum for October delivery was up 23.9 dollars, or 2.57 percent, to settle at 955.6 dollars per ounce.

(www.chinaview.cn 2019-09-04)