Gold hovered near last week’s six-month low on Monday as investors flocked to U.S. Treasuries rather than bullion, amid concerns over a global trade war ratcheting higher after a report said the United States plans to bar Chinese companies from investing in its technology firms.
Spot gold was down 0.2 percent at $1,266.29 per ounce by 1:35 p.m, Reuters reports.
U.S. gold futures for August delivery settled down $1.80, or 0.1 percent, at $1,268.90 per ounce. Palladium was down 2 percent at $937.70 an ounce. The metal earlier slipped to $936.25 an ounce, its lowest since
April 10.
The U.S. Treasury Department is crafting rules that would block firms with at least 25 percent Chinese ownership from buying U.S. companies involved in “industrially significant technology,” The Wall Street Journal reported on Sunday.
Gold, which is traditionally seen as a safe haven in times of geopolitical uncertainty, has failed to benefit as investors poured into U.S. Treasury debt.
“Right now, the flight-to-quality money is going into the bonds,” said Bob Haberkorn, senior market strategist at RJO Futures. “Commodities on a whole are being pulled back with the threat of tariffs.”
Platinum lost 0.7 percent to trade at $867.20 an ounce. It touched $851.74, the weakest since February 2016, in the previous session.
