Gold price was up on Friday in Asia, backed by an increasingly rising number of COVID-19 cases in China as well as heightened tensions between the United States and China.
In Beijing, 25 new COVID-19 cases were reported and these cases were linked to an outbreak in Xinfadi market which now stands at almost 200. There was also an increased number of cases in many states of the U.S.
On the tensions between both developed nations, U.S President Donald Trump, also warned on Thursday that cutting ties with China was still a possibility. This came just a day after Secretary of State Mike Pompeo, met China’s top diplomat Yang Jiechi in Hawaii.
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Consequently, Gold futures was up by 0.25% at $1,735.35, with investors turning to the asset as a safe store of value especially given the politically and financially uncertain times.
However, the dollar’s rise to a near two-week high in the previous session subdued gold’s advance.
What you need to know about Gold
Gold is a valuable metal, often been used by jewellers and the wealthy as a status symbol dating back to ancient periods. Global investors use precious metals like gold to hedge against inflation. A majority of U.S. reserves are also in Gold.
