By Bryan Wong
Investing.com- Gold climbed close to a nine-year high on Thursday morning in Asia, with a sluggish economic recovery and rising political tensions between the U.S. and China driving investors to the safe-haven asset.
Gold futures were up by 0.15% to $1,867.85, by 12:11 AM ET (5: 11 AM GMT), not far below its record high of $1,920.70 in 2011. Stocks, which usually move in the opposite direction to gold, were down on Thursday.
“The closer gold gets to its record high the stronger the magnetic field will become and that could see it challenge that level before long,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, told Bloomberg.
Rising U.S.-China political tensions contributed to gold's gains. The U.S. ordered China to close its consulate in Houston, Texas, by Friday with U.S. Secretary of State Mike Pompeo accusing China of intellectual property theft. China's foreign ministry condemned the move on Twitter as “political provocation”.
Meanwhile, U.S. economic recovery from COVID-19 remains slow and the relentless rise of global cases continues. The global number topped 15 million as of July 23, according to Johns Hopkins University data. The U.S. Congress also continues its debate over further stimulus measures, with some measures set to expire at the end of July.