Gold Price Resumes Rally As China Allows Further Yuan Depreciation
London (Aug 12) Gold resumed its rebound for a fifth straight session, hovering near its highest level in three weeks, as further devaluation by China sparked some haven demand on gold.
The yellow metal hit a high of $1119.58 an ounce, while it currently trading at $1118.98, after opening at $1108.41.
China decided to allow the yuan depreciate for a second day versus the US dollar on Wednesday, causing a sell off in shares.
Some investors resorted to bullions as a classic safe have until evaluating the Chinese movement, while others deemed gold as an alternative investment at the meantime, especially as the dollar resumed its plunge for a sixth straight session.
The dollar slipped against a basket of major currencies to 96.47 from the session’s high at 97.37, according to the dollar index.
Crude oil inched up to $43.45 a barrel, following its drop on Tuesday to a low of $42.68.