BENGALURU. — Gold prices rose yesterday as the dollar eased amid renewed concerns over a trade war after China imposed additional tariffs on U.S. products in response to U.S. duties on imports of aluminium and steel. After falling in the past three trading sessions, spot gold edged up 0,5 percent to $1 331.19 per ounce at 0706 GMT.
China has slapped extra tariffs of up to 25 percent on 128 U.S. products including frozen pork, as well as wine and certain fruits and nuts, in response to U.S. duties on imports of aluminium and steel.
The tariffs take effect on Monday and match a list of potential tariffs on up to $3 billion in U.S. goods published by China on March 23.
“The trade war is going on and it is getting worse, so that might be the reason that people are selling dollar and buying gold,” said Yuichi Ikemizu at ICBC Standard Bank in Tokyo.
The dollar index, which measures the green-back against six other major currencies, eased 0,3 percent to 89,929.
U.S. gold futures rose 0,6 percent to $1 334.90 an ounce.
Gold fell 1.7 percent last week in its biggest such drop since early December. But the precious metal climbed 1,7 percent in January-March, posting its third straight quarterly gain. The market is trading higher on bargain-hunting amid expectations that prices have hit bottom, said a Singapore-based trader. — Reuters.