Gold firms as Sino-U.S. trade spat dents risk sentiment
59 2019-05-07
(Reuters) - Gold prices edged higher on Tuesday as investors moved away from riskier assets after U.S. President Donald Trump threatened to raise tariffs on Chinese imports, heightening trade tensions and lifting demand for the safe-haven metal.

Spot gold was up 0.1 percent at $1,281.04 an ounce at 1120 GMT.

U.S. gold futures fell 0.1 percent to $1,282.10.

“Donald Trump tweets over the weekend and reactions out of China has sent shockwaves. European equities are further down this morning and this is a situation where gold is seen as a safe-haven,” said Quantitative Commodity Research analyst Peter Fertig.

“There has been uncertainty in the market since yesterday, which has given gold a push higher.”

U.S. President Donald Trump said that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent on Friday, reversing a decision he made in February to keep them at 10 percent as the two sides made progress on trade talks.