Mubasher: Gold prices rose on Monday as investors looked for further clarity on the trade negotiations between the US and China, while the escalating tensions in the Middle East lent some support the safe-haven metal, according to Reuters.

By 9:57 am GMT, spot gold inched up by 0.10% to $1,518.45 per ounce, while US gold futures rose by 0.73% to $1,526.10 per ounce.

“The pickup in geopolitical risk from Saudi Arabia and President Trump rejecting the possibility of a partial trade deal with China certainly adds that little more shine to gold,” OCBC Bank economist Howie Lee was quoted by the news agency.

A breakthrough in the trade talks between negotiators from the world’s biggest two economies seemed unlikely after US President Donald Trump said he was “not looking” for a partial deal, while Chinese officials cancelled goodwill visits to American farmers.

However, both sides conveyed positive signals, with the US Trade Representative’s office praising “productive” talks and Chinese Commerce Ministry describing them as “constructive.”

In the Middle East, the geopolitical situation remained strained with the US Defense Department ordering additional US troops to be deployed in the Gulf region, after Saudi Arabia’s largest oil processing facility was hit in mid-month attacks, which Washington blamed on Iran.

The US also imposed more sanctions against Iran, punishing the Iranian Central Bank.