Gold prices rise as US, China kick off new round of tariffs

Gold prices gained early on Monday as the United States and China launched fresh tit-for-tat tariffs on each other’s exports, escalating the prolonged trade war and adding to fears of a global economic slowdown.

Spot gold was 0.6 percent higher at $1,528.31 per ounce at 0048 GMT, having fallen to a one-week low at $1,517.11 in the previous session. US gold futures were up 0.5 percent at $1,537.70 an ounce.

The United States began imposing 15 percent tariffs on a variety of Chinese goods on Sunday - including footwear, smart watches and flat-panel televisions - as China began imposing new duties on US crude. US President Donald Trump said the sides would still meet for talks later this month.

China plans to provide more support for its economy, including investing in infrastructure projects and regional development, while maintaining a prudent monetary policy with "reasonably" ample liquidity, the State Council said on Sunday.