Gold prices rebounded on Tuesday 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 investor appetite for safe-haven assets.
Spot gold was up 0.5% at $2,996.6 an ounce, as of 0340 GMT. Bullion hit its lowest level since March 13 on Monday.
US gold futures gained 1.3% to $3,010.70.
US President Donald Trump ramped up tariff threats against China on Monday, while the European Union outlined plans for retaliatory duties, deepening fears of a drawn-out trade war that could tip the global economy into recession.
“Escalation of the trade war could trigger a global recession, and that is driving safe-haven demand,” said Reliance Securities’ senior analyst Jigar Trivedi.
“Despite slipping in the previous sessions, gold is still strong and should remain on the upward trend,” because of the bullish undertone.
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, often considered a safe investment during times of political and financial uncertainty, scaled an all-time peak of $3,167.57 on April 3.
Markets will be closely monitoring minutes from the US Federal Reserve’s latest policy meeting, scheduled for release on Wednesday.
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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 Fed by December.
Among other metals, spot silver eased 0.1% to $30.09 an ounce, platinum firmed 1.3% to $925.35 and palladium lost 0.3% to $915.80.
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