Gold climbed back above $2 000 an ounce as renewed tensions between the U.S. and China boosted demand for haven assets, and the dollar weakened.
The Trump administration announced further curbs on Huawei Technologies aimed at cutting its access to commercially available chips. The move is the latest tit-for-tat in escalating tensions between Washington and Beijing over everything from the pandemic to China’s tight grip over Hong Kong. Equities drifted, while a dollar gauge slid to the lowest since 2018.
Gold has surged this year on rising haven demand and as investors bet central banks and governments will maintain support for economies hit by the coronavirus. Bullion hit an all-time high on August 7, before posting its first weekly drop in more than two months, buffeted by an uptick in real yields.