Bengaluru : Gold prices rose on Tuesday, supported by safe-haven buying as an escalating trade spat between the United States and China sparked a sell-off in equity markets.
Spot gold was up 0.2 percent at $1,280.29 an ounce by 0640 GMT. U.S. gold futures for August delivery were 0.2 percent higher at $1,282.60 per ounce.
Asian stocks and the U.S. dollar extended a global downturn after President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods in an escalating tit-for-tat trade war between the world´s two biggest economies.
The dollar hit a one-week low versus the yen and Asian shares outside Japan slid 2 percent to their lowest level in over six months.
"There is a bit of panic as investors are looking for cover, especially from equity market, and as we know gold does offer that hedge," said Stephen Innes, APAC trading head at OANDA.