Insignia Consultants | Gold rises as trade war jitters revive safe-haven demand
Gold rises as trade war jitters revive safe-haven demand
April 8 (Reuters) - 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.
U.S. 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.
