The rise in the price of gold is reported to have come from investor demand for gold-backed exchange traded funds, according to the FT. This helped the metal rise to record levels. Investors put back a net $7.4bn into gold-backed ETFs last month, according to data from the World Gold Council.
This added to the record $40bn they invested in the first half of the year.
Gold would benefit as bond yields continued to slide and inflation started to take shape.
Jim Luke, a fund manager at Schroders. US 10-year real yields, said: “We’re in a world where inflation will move above targets and real rates will be significantly lower than now.”
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6.28am update: China and US to review trade deal on August 15 – sources
Senior US and Chinese officials will review the implementation of their Phase 1 trade deal and likely air mutual grievances in an increasingly tense relationship during an August 15 videoconference, two people familiar with the plans said.
US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He, the principal negotiators for the two countries, will participate in the meeting, an initial six-month review of the pact activated on February 15.
The meeting plans were first reported by the Wall Street Journal.
Under the Phase 1 trade deal signed in January, China had pledged to boost purchases of US goods by some $200 billion over 2017 levels, including agricultural and manufactured products, energy and services.
But China, battered by the global coronavirus recession, is far behind the pace needed to meet its first-year goal of a $77 billion increase. Imports of farm goods have been lower than the 2017 level, far behind the 50 percent increase needed to meet the 2020 target of $36.5 billion.
Published at Wed, 05 Aug 2020 05:21:00 +0000