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Gold Surges With Rising Global Tensions Boosting Haven Demand - BLOOMBERG
(Bloomberg) -- Gold surged on revived demand for safer assets as the US and China traded accusations, while a dramatic series of attacks clouded the prospects of peace between Russia and Ukraine.
Bullion climbed as much as 2.7% after Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war. The precious metal earlier was boosted after Ukraine staged drone strikes across Russia on Sunday, while Moscow launched one of its longest attacks against Kyiv.
Meanwhile, renewed trade tensions between the US and China and a weak US manufacturing report further boosted demand for bullion. That haven appeal has seen gold climb more than 28% this year after hitting a record high above $3,500 an ounce in April.
Haven demand also lifted silver, with prices surging the most since October.
Looking ahead, there are a slew of US labor-market indicators due this week — including the May employment report — which will help to steer the Federal Reserve’s monetary policy.
Spot gold rose 2.5% to $3,372.28 an ounce as of 11:27 a.m. in New York. The Bloomberg Dollar Spot Index fell 0.6%. Silver, platinum and palladium all gained.
--With assistance from Sybilla Gross.
