Investing.com - Gold prices rose on Monday as escalating trade tension spurred risk aversion, boosting demand for safe-haven assets.
At 9:44 AM ET (13:44 GMT), gold futures for August delivery on the Comex division of the New York Mercantile Exchange gained $8.65, or 0.7%, to $1,319.75 a troy ounce.
Prices rose as China showed increased unwillingness to back down from Washington’s pressure in the trade dispute.
In a white paper on trade, Beijing accused the U.S. of “intimidation and coercion” and called U.S. demands as “exorbitant”.
China also showed its muscle, implementing previously announced retaliatory tariff hikes and said it will take action against “unreliable” foreign companies, with a list of violators pending.
At the same time it opened an investigation into FedEx (NYSE:FDX) after Huawei said it diverted to the United States two packages intended for the company's offices in China.
With U.S. President Donald Trump’s plans to place tariffs on all imports from Mexico to the U.S. underway, a senior Mexican delegation was set to begin high level talks on Monday in Washington.
The Trump administration announced on Thursday it will impose a 5% tariff on all imported goods from Mexico beginning June 10 and “gradually increase” that tax to 25% until the flow of undocumented migrants across the border stops.
Banks on Wall Street have come out in force, warning thatincreasing tariffs ran the risk of leading to a global recession.
Gold tends to act as the safe haven of choice in times of political and economic troubles.
In other metals trading, silver futures advanced 1.0% at $14.713 a troy ounce by 9:47 AM ET (13:47 GMT).
Palladium futures fell 1.0% at $1,318.80 an ounce, while sister metal platinum traded up 1.1% at $803.10.
In base metals, copper gained 0.5% to $2.653 a pound.