WASHINGTON (dpa-AFX) - Gold prices rose over 1 percent on Monday to hit a six-year high, as global growth worries along with fears over a sharp escalation in the U.S.-China trade war helped spur safe-haven demand for the precious metal.
Spot gold rallied 1.4 percent to $1,461.12 per ounce, while U.S. gold futures were up 1.1 percent at $1,473.85.
Growth worries linger as a private survey showed that China's services sector expanded at the slowest pace in five months in July despite a sharp upturn of new export orders.
A measure of euro area investor confidence deteriorated sharply in August to its lowest level in nearly five years, amid a steep drop in the current situation assessment and expectations.
The euro area private sector growth softened in July, largely due to deepening downturn in manufacturing activity, final data from IHS Markit revealed.
On the trade front, China's central bank allowed its yuan to fall below the politically sensitive level of seven to the U.S. dollar, fueling speculation that Beijing was allowing currency depreciation to counter U.S. President Donald Trump's latest tariff threat.
The precious metal is also benefiting from expectations that global central banks will try and do more to maintain their accommodative stance.
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