Shafaq News / according to Reuters, Gold soared to a nine-year peak on Wednesday as an escalation in U.S.- China tensions stoked demand for safety, while silver followed bullion’s rally to hit a near seven-year high on hopes for a recovery in industrial demand.
Spot gold hit its highest since September 2011 in early trade at $1,865.35, and by 11:27 a.m. EDT (1527 GMT) rose 1% to $1,859.86 per ounce.

U.S. gold futures were 0.7% higher at $1,856.90 per ounce.

“Gold is accelerating higher and that’s been mainly on the geopolitical tensions with China. There seems to be no end in sight for this escalation ... and it’s going to damage sentiment as the world’s largest countries continue to bicker,” said Edward Moya, senior market analyst at broker OANDA.

The United States ordered China to close its consulate in Houston, while a source said Beijing was considering shutting the U.S. consulate in Wuhan in retaliation.

The tit-for-tat between the two countries is likely to further deteriorate the global economic outlook as it reels under the impact of the pandemic.