On Monday, gold surged 2% to its highest level in more than six years. U.S. gold futures rose 0.2% to $1,487.60 an ounce.
Gold prices edged up on Wednesday as the ongoing trade tensions between the United States and China continued to boost the appeal of safe-haven assets.
Spot gold rose 0.2% to $1,476.91 per ounce as of 0114 GMT. On Monday, gold surged 2% to its highest level in more than six years. U.S. gold futures rose 0.2% to $1,487.60 an ounce. Goldman Sachs said it no longer expects a trade deal to be struck before the 2020 U.S. presidential election, while Morgan Stanley warned that more tit-for-tat tariffs could tip the world economy into recession by the middle of next year.
A Federal Reserve official on Tuesday said it was appropriate to “wait and see” how upcoming data “roll in” before deciding whether rates should be cut again at the Fed’s next meeting in September. Kudlow, director of the White House National Economic Council, said on Tuesday the Trump administration wants to continue trade talks with China and is still planning to host a Chinese delegation for talks in September. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21% to 836.92 tonnes on Tuesday from 835.16 tonnes on Monday. New Zealand’s central bank is expected to cut interest rates to a record low of 1.25% on Wednesday, but strong unemployment data released on Tuesday suggests the economy may not be as bad as some had speculated.