Investing.com - Gold prices remained steady on Tuesday in Asia as persistent concerns over global trade tensions and a softer dollar underpinned safe haven demand for the yellow metal.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange last traded at $1,327.25 a troy ounce by 12:18 AM ET (04:18 GMT), little changed for the day.
News that the U.S. reiterated its view that China “backpedalled” on key elements of a trade deal that had been largely agreed raised concerns that the two sides are still far away from agreeing on a trade deal. The U.S. also said China is playing a “blame-game” after Beijing accused the U.S. of “intimidation and coercion” and called U.S. demands as “exorbitant” In a white paper on trade over the weekend.
Global stocks were already under pressure this week amid heightened global trade tension.
U.S. President Donald Trump’s plans to place tariffs on all imports from Mexico were also in focus, as banks on Wall Street warned that increasing tariffs could run the risk of leading to a global recession.
In general, gold tends to act as the safe haven of choice in times of political and economic troubles.
"Undoubtedly, trade concerns will continue to dominate the agenda," said Fawad Razaqzada, analyst at FOREX.com.