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Gold Futures Rise Sharply, End At Over 1-month High

Gold prices advanced to over 1-month high on Monday, as traders rushed for the safe haven asset after global equities tumbled amid rising concerns over growth after China retaliated to U.S. tariffs on its goods by announcing higher levies on about $60 billion worth of U.S. goods.

Gold prices edged lower early on in the session after the Chinese currency yuan dropped to its lowest level in about five months against the greenback as trader concerns weighed.

However, the yellow metal rebounded after equities plunged and the dollar weakened on trade jitters.

The dollar index dropped to a low of 97.03, before forcing its way up to around 97.30, near its previous close.

Gold futures for June ended up $14.40, or 1.12%, at $1,301.80 an ounce.

On Friday, gold futures for June ended up $2.20, or 0.2%, at $1,287.40 an ounce.

Silver futures for July ended down $0.013, at $14.777 an ounce, while Copper futures for July settled at $2.7190 per pound, down $0.0555 from previous close.

Global stocks plunged on Monday amid worries about growth after China retaliated to the U.S. decision to increase tariffs on about $200 billion worth of Chinese goods.

After saying last week that it would come up with "necessary countermeasures" in response to the tariff increase by the U.S., China has gone ahead and announced tariffs on U.S. goods, despite U.S. President Donald Trump's warning that the situation "will only get worse" if China retaliates.

China has announced that tariff hikes ranging from 5 to 25% on 5,140 U.S. products would take effect on June 1st.

Meanwhile, according to reports, China has invited U.S. officials to Beijing to continue talks this week.

Trump's economic advisor Larry Kudlow said Trump and Chinese Premier Xi Jinping are likely to meet during a G-20 meeting in June.

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