Gold prices rose to a near one-month high on Wednesday, as US President Donald Trump's comments dampened hopes for a quick preliminary trade agreement with China, driving support for safe-haven assets.
Spot gold gained 0.3% to $1,482.02 per ounce by 0707 GMT, its highest since Nov. 7, while US gold futures were up 0.2% to $1,487.90.
President Trump on Tuesday said a deal with China might have to wait until after the US presidential election in November 2020.
Trump's comments come shortly after he slapped tariffs on US steel and aluminium 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.
"President Trump saying a trade deal may not happen until after the US election next year and the passage of the second China bill in the House of Representatives will add to the extreme trade worries because the fear is - China might just walk away from any trade negotiations."
Trump's remarks prompted investors to reduce their exposure to risk, with Asian shares extending their losses, while the US dollar hovered close to a one-month low, making gold more attractive.
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 long trade dispute and its impact on the global economy.
"Bull-run in gold is expected to continue and it can touch the $1,500 level this week, and $1,520 in the week going forward," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India.
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