Gold near 1-month high as trade drag lifts safe-haven demand
Gold prices on Wednesday hovered near a one-month high hit in the previous session, as comments from US President Donald Trump dashed market hopes for a quick preliminary agreement with China, driving support for safe-haven assets.
Spot gold was up 0.1% at $1,478.81 per ounce, as of 0403 GMT, while US gold futures were flat at $1,484.60.
Bullion prices rose to their highest since Nov. 7 on Tuesday after Trump said a deal with China might have to wait until after the US presidential election in November 2020.
Gold, which is seen as safe investment during times of political and economic stress, has gained about 15% so far this year, mainly due to the 17-month trade dispute and its impact on global economy.
Trump's comments come shortly after he slapped tariffs on US steel and aluminum imports from Brazil and Argentina.
"Gold has benefited from strong safe-haven flows, equities tanked and the dollar fell as well. And, that's the reason why gold has risen overnight," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
In other precious metals, palladium dipped 0.2% to $1,851.94 per ounce, after scaling an all-time peak on Dec. 2 at $1,861.71. Silver remained unchanged at $17.17, while platinum advanced 0.2% to $911.24 per ounce.