Investing.com - Gold prices rose on Friday in Asia amid news of unexpected tariffs on Mexican goods, while persisting Sino-U.S. trade tensions continued to attract safe-haven demand.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were up 0.4% at $1,292.7 per ounce by 1:15 AM ET (05:15 GMT).
Overnight, U.S. President Donald Trump said that Washington would impose a 5% tariff on Mexican goods. The tariff would become effective June 10, until that country stops immigrants from entering the U.S. illegally.
Persisting Sino-U.S. trade tensions were also cited as a catalyst for the buying in safe-haven gold. Former governor of the People’s Bank of China Dai Xianglong said on Friday that he expected no major trade breakthrough when Chinese President Xi Jinping meets with his U.S. counterpart Donald Trump next month at the G-20 meeting.
In other news, citing people familiar with the matter, a Bloomberg report said China has halted purchases of American soybeans and is not expected to resume the buying due to the disagreement over trade.
Also adding to concerns is China’s latest factory activity data, which shrank more than expected in May.
Gold is now on track for its first monthly gain since January.