Gold climbed to a one-month high on Wednesday amid persisting trade dispute between the U.S. and China that directed the sentiment towards safe havens.
While recently gold has failed to take advantage of the trade worries, it managed to rise for a second straight session to a one-week high of $1261.09 an ounce, while currently trading at $1256.50.
The yellow metal plunged to a seven-month low of $1237.91 on Tuesday but rebounded strongly to finish the session higher due to the retreat in the U.S. dollar.
Gold has been in a bearish direction since April 8 when it set its second highest record this year at $1365.24 as the dollar’s strength and investors’ preference to other safe havens dented the appeal of the metal.
The dollar rebounded from a low of 94.12 to trade higher at 94.38, forcing bullion to give up some of its earlier gains.
Asian shares dipped to a 9-month low today, with the Chinese benchmark the Shanghai Composite index dropping to the lowest closing point since March 2016.
China is preparing to impose 25 percent tariffs on over $30 billion of U.S. imports, in response to America’s imposition of tariffs on $34 billion worth of goods from China that would become effective on July 6.
Movements in the market will probably calm down for the rest of the session, as U.S. markets will remain closed on Wednesday for the Independence Day holiday.
The key factors that could weigh on gold prices this week will be the Federal Reserve’s minutes for June policy meeting and the U.S. non-farm payrolls data for June due on Friday.
Platinum was 0.01 percent down at $840.75 an ounce after plummeting to
its lowest level since December 2008 the previous session.