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Gold Price Eyes Imminent Return to Six-Year High as Trump Attacks China, Iran and Social Media

Last Updated September 23, 2020 1:03 PM
Sam Bourgi
Last Updated September 23, 2020 1:03 PM

The gold price inched toward six-year highs on Tuesday, underpinned by a fresh wave of haven buying spurred on by negative headlines from around the world.

Gold Extends Rally

Gold bullion
Gold prices are eyeing an imminent return to multi-year highs. | Image: AP Photo/Mike Groll, File

Futures on December gold deliveries climbed to a session high of $1,543.30 a troy ounce on the Comex division of the New York Mercantile Exchange. That’s roughly 1.5% shy of a new six-year high.

At last check, the December contract was up $7.20, or 0.5%, to $1,538.60 an ounce.

gold price
Bullion on track for its third straight gain. | Chart: barchart.com

Bullion is riding a three-day winning streak and has recorded gains in six of the past seven sessions.

Silver failed to keep pace with gold on Tuesday, with prices falling 7 cents, or 0.4%, to $18.64 a troy ounce. The grey metal’s weak performance caused the gold-silver ratio to spike 1.1% to 82.54. That’s 82.54 ounces of silver to buy one ounce of gold.

The U.S. dollar declined against a basket of currencies on Tuesday, which made bullion more attractive to international buyers. The U.S. dollar index (DXY) fell 0.3% to 98.33.

Trump Rattles Markets

Haven buying accelerated Tuesday as investors reacted to President Trump’s takedown of China, Iran and illegal immigration at the United Nations General Assembly in New York.

Trump said his administration is looking to tackle “grave economic injustice” caused by China’s trade practices and warned Iran that more sanctions are coming if the country continues to interfere in regional affairs.

“For decades the international trading system has been easily exploited by nations acting in very bad faith,” Trump said in reference to China.

He added :

“Not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced technology transfers and the theft of intellectual property and also trade secrets on a grand scale.”

The president also took aim at social media companies for their blatant anti-conservative bias.

Per pix11.com :

“A free society cannot allow social media giants to silence the voices of the people… And a free people must never, ever be enlisted in the cause of silencing, canceling or blacklisting their own neighbors.”