Gold Moves Sharply Higher Amid Renewed Trade Tensions

(RTTNews) - Following the pullback seen in the previous session, the gold showed a substantial move back to the upside during trading on Monday.

Gold for June delivery surged $81.70 or 2.5 percent to $3,370.60 an ounce after sliding $28.20 or 0.9 percent to $3,288.90 an ounce during last Friday's session.

The precious metal benefitted from its appeal as a safe haven amid further signs of rising trade tensions between the U.S. and China.

China on Monday pushed back against President Donald Trump's claims that it had broken the Geneva trade agreement, accusing the U.S. of violating the deal with increased tech export restrictions and the revocation of Chinese student visas.

"These practices seriously violate the consensus reached by the two heads of state on January 17, seriously undermine the existing consensus of the Geneva economic and trade talks, and seriously damage China's legitimate rights and interests," a Chinese Ministry of Commerce spokesperson said.

The Trump administration has also announced it will double the current tariff rate on steel and aluminum imports from 25 percent to 50 percent.

The increase by the price of gold also came amid a decrease by the price of the U.S. dollar, with the U.S. dollar index falling by 0.5 percent to its lowest levels in well over a month.