Gold surged 2% on Friday as investors interpreted US Federal Reserve Chair Jerome Powell's speech as leaning toward a dovish monetary policy stance and President Donald Trump's latest comments exacerbated trade tensions with China.
Spot gold rose 1.9% at $1,526.60 an ounce on Friday trade in New York, shaking off slight headwinds ahead of the Fed Chair's speech. Prices earlier rose to $1,528.79, the highest since Aug. 13, when spot gold had scaled a six-year peak of $1,534.31. US gold futures settled up 1.9% to $1,537.60.
Powell said the US economy is in a "favorable place," but gave few clues about interest rate cuts at its next meeting. However, he listed a series of economic and geopolitical risks the Fed is monitoring, noting these were linked to the trade spat.
Powell's speech prompted a backlash from Trump on Twitter, asking whether the Fed chair was a greater "enemy" than China's leader Xi Jinping.
Trump also ratcheted...