Mubasher: Gold prices climbed, away from a one-week trough hit in the preceding session, as concerns over US-China trade conflict re-emerged, curtailing risk-taking sentiment and boosting the safe-haven appeal of the precious metal, Reuters reported.
By 9:26 am GMT, spot gold jumped by 0.72% to $1,336.45 per ounce, after reaching $1,319.35 per ounce, the lowest level seen since 3 June, while US gold futures rose by 0.68% to $1,340.20 per ounce.
Asian equities ebbed as Washington and Beijing engaged in another round of salvos.
“Market sentiment this morning is very cautious and risk appetite has started to diminish gently, therefore we see a little bit of buying in gold,” Singapore-based Phillip Futures analyst Benjamin Lu was quoted by the news agency.
US President Donald Trump advocated the use of tariffs within his trade policy, asserting that he was holding up a trade agreement with China, and would not proceed unless Beijing agrees to commit again to four or five “major points.”
The Chinese government vowed tough action if the White House insists on escalating trade tensions.
“If there is no sit down between leaders at the G20 meeting, the metal will rise as investors will be on the lookout for a safe haven,” a note by OANDA senior market analyst Alfonso Esparza was quoted by Reuters.
As the Federal Reserve policymakers are due to meet on 18 and 19 June, gold drew support from hopes of an interest rate cut, amid arising trade tensions, a slowdown in the US economy and a steep downturn in employment last month.
All of that prompted markets to price in at least two rate cuts by the end of this year.
Currently, market participants are awaiting the US inflation figures for May due later in the day.