American-Chinese tensions, economic data in focus

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Gold rose to its highest level since October 2012 on Monday, concerns over the sour relationship between the United States and China and the bleak US economic data underlying the refuge metal.

Spot gold rose 0.9% to $ 1,756.79 an ounce at 0043 GMT, after reaching its highest level since October 12, 2012 at $ 1,759.98. American gold futures rose 0.5% to $ 1,765.70.

The January 1 “Phase 1” trade agreement between China and the United States is not collapsing, and the two countries are still working to implement it, the White House chief economic adviser said on Friday, but the President Donald Trump added that he was not “thrilled”. with the agreement.

The Chinese Commerce Ministry said on Sunday that it is firmly opposed to the latest US rules against Huawei and will take all necessary measures to protect the rights and interests of Chinese companies.

Highlighting the economic impact of the coronavirus epidemic, retail sales in the United States suffered a second consecutive month of record declines in April, putting the economy on track for its largest contraction in the second quarter since the Great Depression.

An economic recovery in the United States may extend far into the next year and a full return may depend on a vaccine, the chairman of the Federal Reserve said on Sunday evening as he stressed the likely need for three to an additional six months of government financial assistance for businesses and families.

Gold tends to benefit from widespread stimulus because it is seen as a hedge against inflation and currency depreciation, while it is also used as a refuge in times of economic and political uncertainty.

Authorities in Wuhan, China tested more than 3 million people for the coronavirus in April and May, and aim to test everything else, media said as the city faced the threat of a second wave. ‘infections.

Japan’s economy went into recession for the first time in four and a half years, GDP data showed, putting the nation on its way to its deepest post-war recession.

Physical demand for gold was warm in most Asian centers last week, as retail purchases have not yet experienced a significant recovery, although the main centers, India and China, have relaxed some restrictions related to coronaviruses.

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