[BENGALURU] Gold prices edged higher on Tuesday (Apr 8) from a near four-week low reached in the previous session, as heightened concerns over the global trade war between the United States and its key trading partners lifted demand for safe-haven assets.
Spot gold was up 0.3 per cent at US$2,990.48 an ounce, as at 0032 GMT. Bullion hit its lowest level since Mar 13 on Monday. US gold futures gained 1.1 per cent to US$3,004.70.
A global trade war, sparked by US President Donald Trump’s broad tariffs, escalated on Monday as Trump threatened to increase duties on China and as the European Union proposed counter-tariffs.
Trump said he was not considering a pause on tariffs to facilitate negotiations with trading partners, but mentioned that he would engage in discussions with China, Japan and other countries regarding the duties.
Gold, used as a safe investment during times of political and financial uncertainty, scaled an all-time peak of US$3,167.57 on Apr 3.
Markets will be closely monitoring minutes from the US Federal Reserve’s latest policy meeting, scheduled for release on Wednesday.
Traders also await US Consumer Price Index data, due on Thursday, and the Producer Price Index on Friday for US interest rate cues amid escalating global trade war and recession fears.
Futures now point to around 93 basis points’ worth of interest rate cuts by the US Federal Reserve by December.
In other metals, spot silver fell 0.1 per cent to US$30.08 an ounce, platinum firmed 0.6 per cent to US$918.55 and palladium lost 0.9 per cent to US$910.50. REUTERS
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