Gold edges up on rising trade war fears

BENGALURU- Gold prices rose slightly in early Asian trade on Tuesday after a more than 1 per cent gain in the previous session, as mounting global trade tensions fuelled demand for the safe-haven bullion.

FUNDAMENTALS

* Spot gold was up 0.1 per cent at $ 1,341.68 per ounce as of 0045 GMT. It climbed 1.3 per cent on Monday in its biggest one-day per centage rise in a week.

* US gold futures eased 0.1 per cent to $ 1,345.70 an ounce.

* The dollar index , which measures the greenback against six other major currencies, was down 0.1 per cent at 90.009.

* Asian stocks extended a global selloff and the yen rose as investors fled for safety as an escalating trade spat between the United States and China and a renewed slump in tech shares such as Amazon.com sapped investor confidence.

* The White House on Monday accused China of distorting global markets and said the country should not target “fairly traded US exports” after Beijing increased tariffs on 128 US products in response to US duties on imports of aluminum and steel.

* The Trump administration this week will unveil a list of advanced technology Chinese imports targeted for US tariffs to punish Beijing over technology transfer policies, a move expected to intensify trade tensions between the world’s two largest economies.

* US factory activity slowed in March amid shortages of skilled workers and rising capacity constraints, but growth in the manufacturing sector remains underpinned by strong domestic and global economies.

* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.73 per cent to 852.31 tonnes on Monday from 846.12 tonnes on Thursday.

* Sales in March of US Mint American Eagle gold fell to their lowest for the month, and silver coins dropped to their lowest in 11 years, government data showed.