Gold continues to sparkle and attract more investors. Gold prices were seen shooting up by 1percent on Wednesday.
The economic slowdown is affecting almost all countries, spurred by the trade war between the United States and China. Both countries are attacking each other with tariffs and bans which is affecting the growth of other countries too.
Gold prices surged ahead as of 0718 GMT to $1,490.57 per ounce. This is the highest level in six years, last seen in April 2013. Gold futures were at $1,501.50 per ounce.
The Chinese currency yuan has slid past its psychological support level at 7 per dollar, which sent the stock market crashing on the downslide. The value of the yuan will be closely monitored by the global markets as China has been accused by the U.S. of manipulating its currency, using it as a trade weapon.
Meanwhile, bond yields are under pressure with lower interest rates. The 10-year U.S. Treasuries saw a downslide to touch three-year lows. Investors rush to other investments which are safer, as there are many geopolitical events that are triggering major unrest within many countries.
On Wednesday, the dollar saw a drop of 0.1 percent touching a two-week low.
Silver continued to shine at $16.74 per ounce, as it went up by 1.8percent, the highest levels since June 2018.
The U.S. has announced a 10 percent tariff on Chinese imports from September 1. If China refuses to move ahead with a trade deal, President Trump has said that the tariffs will be increased further. This has set in a panic within countries.
The conflict between Washington and Beijing will hinder global growth too, says Ilya Spivak, the currency strategist at DailyFx.
Germany which depends on Washington and Beijing for its industrial trade saw a plunge in its industrial output. In June, output fell almost by 1.5 percent, its slowness triggered by the trade war.