Gold unstoppable as investors flee stocks

Agencies and staff reporter

Gold hit a fresh record high above US$2,950 (HK$23,010), with investors fleeing from stock markets amid the threat of an escalating global tariff war.

Spot gold climbed 0.7 percent to US$2,953.12 an ounce, as of 0853 GMT, after hitting US$2,954.69 earlier in the session, its 10th record high this year.

Gold, a safe-haven in times of uncertainty, has gained 12 percent so far this year.

"The US$3,000 level seems to be having a magnetic effect on the market and even though by most considerations the market is technically overbought, it seems determined to crack that magic level," said independent analyst Ross Norman.

US President Donald Trump said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals "over the next month or sooner."

But the president also said it would be possible to reach a fresh trade deal with China, signaling he is open to heading off a brewing trade fight between Washington and Beijing.

Hong Kong stocks fell 1.6 percent yesterday, with the benchmark Hang Seng Index losing 367 points to 22,576 points from the day's peak of 22,849 points. Tech stocks retreated with the Hang Seng Tech Index falling 3.04 percent to 5,500 points.

However, Morgan Stanley expects HSI to end 6 percent higher to 24,000 points by the year-end and outperform mainland markets.

In the mainland, the Shanghai Composite Index closed nearly flat at 3,350 points, while the Shenzhen Component Index rose 21 points to 10,794 points

Elsewhere, Japan's Nikkei 225 slid more than 1.2 percent to 38,678 points and the Korea Composite Stock Price Index fell 0.65 percent to 2,654 points.