Gold Gains On Risk Aversion

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Gold prices inched higher Friday amid safe-haven demand as investors fretted over rising coronavirus cases around the world, disappointing jobless claims data and worsening U.S.-China tensions.

Sino-U.S. ties have deteriorated further after China ordered the U.S. consulate in the southwestern city of Chengdu to close in response to the closure of the Chinese consulate in Houston earlier this week.

Spot gold rose 0.3 percent to $1,893.42 an ounce, while U.S. gold futures were up 0.1 percent at $1,891.25 per ounce.

The number of cases around the world linked to Covid-19 has crossed 1.54 crore and the death toll topped 6.32 lakh.

The U.S. government reported overnight that more than 1.4 million workers filed new claims for state unemployment benefits last week, the first time the weekly tally has risen in nearly four months.

Meanwhile, in a sign of worsening bilateral relations, U.S. secretary of state Mike Pompeo declared U.S. engagement with China a dismal failure and has called on “free nations” to triumph over the threat of what he said was a “new tyranny” from China.

“Today China is increasingly authoritarian at home, and more aggressive in its hostility to freedom everywhere else,” Pompeo said in a speech on Thursday at the Richard Nixon presidential library in Yorba Linda, California.

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