Gold has been growing since August 1, and the peak growth was more than 5% or almost $75. As a result, the asset updated its annual high at around $1475/oz. It got local support at $1460, which corresponds to the upper limit of the medium-term price channel, where gold has lately been trading. In this regard, the bullish trend can be expected to continue with a price target at around $1500.
A new round of the trade war between the United States and China has become the main driver for growth. The United States accuses China of currency manipulations, which resulted in the weakening of yuan to $7 for the first time since the global financial crisis in 2008. A cheaper yuan eliminates the effect of new US tariffs on Chinese goods. Beijing also insisted its state-owned companies to suspend purchases of US agricultural products, which is the largest export item and one of the key topics in the negotiations between the two superpowers. This has led to an increase in safe haven assets such as the yen or gold.