At 11:45 GMT, XAU/USD $ 2940.40, down $ 11.66 or -0.39%.
Safe port flows dominate on trade war tickles
Gold’s Allure as a safe haven is reinforced by escalating trade tensions while US President Donald Trump is ahead with rates for Canadian and Mexican import. Despite border security improvements by these countries, Trump confirmed on Monday that rates remain “on time and on schedule” before the deadline of 4 March.
UBS analyst Giovanni Staunovo noted that this uncertainty floats a “accessory environment” in precious metals. Since Mexico and Canada are considerable gold and silver producers, the rates can increase the price spread between the American and London markets.
Gold’s recent increase in the previous all times of $ 2,790.17 emphasizes the strong demand for safe port against the background of global economic and political risks.
Feeded policy in focus as inflation data
Traders also look at the position of the American Federal Reserve about interest rates. Research by the San Francisco Fed suggests that the central bank can “strong and systematically” respond to inflation and labor market shifts. Higher inflation can lead to persistent high percentages that can weigh on non-return assets such as gold.
The report of the US personal consumptions (PCE) on Friday, the FED report, is expected to provide insight into the prospects of the monetary policy of the Central Bank.