Mubasher: Gold traded on Wednesday near two-week high touched in the prior session, as equities dropped after the International Monetary Fund (IMF) cut its growth forecast as well as trade tension between the US and Europe emerged, Reuters reported.

By 11:16 am GMT, spot gold ticked up 0.03% to $1,304.54 per ounce, having hit its $1,306.09 per ounce in the preceding session the highest since 28 March, while US gold futures stabilised at $1,308.30 per ounce.

This came as the dollar declined, with the index gauging the US currency inching down 0.10% to 96.9130.

Asian equities slid from their highest level in eight months, keeping the yellow metal above the $1,300 per ounce mark.

Investors shifted to gold after US President Donald Trump expressed his intention to levy tariffs on imports from the European Union (EU), Argonaut Securities analyst Helen Lau was quoted by Reuters as saying.

President Trump on Tuesday threatened to slap $11 billion worth of EU products with duties.

Some worries also persisted in the market over an economic slowdown to which the IMF pointed, Lau said.

“The yellow metal will continue to be bid as the Brexit drama and trade stories unfold at the same time that major central banks continue their dovish rhetoric,” brokerage OANDA senior market analyst Alfonso Esparza was quoted by Reuters as saying.

In the meantime, market participants are awaiting the release of the Federal Open Market Committee’s (FOMC) minutes from its March meeting, and the policy rate decision by the European Central Bank (ECB), both due later in the day.