Gold prices hit their highest level in more than six years yesterday as investors shied away from riskier assets due to anxiety surrounding protests in Hong Kong and a collapse of the Argentine currency amid fears of a global economic slowdown.
Spot gold rose 0.3% to $ 1515.56 an ounce, after hitting its highest level since April 2013 at $ 1518.03. Gold futures rose 0.6 percent to $ 1,526.90 an ounce.
Protests have shut down Hong Kong's airport, objecting to a bill allowing suspects to be handed over to China for trial, but it has expanded to include broader calls for democracy.
Fears of a possible return to interventionist policies in the Argentine market also dominated after President Mauricio Macri lost a margin beyond expectations in the presidential primaries.
These uncertainties, combined with fears of a protracted China-US trade war, have shaken financial markets and pushed investors into safe-haven assets.
Gold, along with the Japanese currency and US Treasuries, is seen as a relatively safe investment in times of political and financial uncertainty. The yen held near a seven-month high against the dollar.
As for other precious metals, silver rose 1.4% to $ 17.29 an ounce. It reached its highest level since February 2018 at $ 17.36.
Platinum rose 1% to $ 860.75 and Palladium gained 0.8% to $ 1,439.11 an ounce.