Gold Rises on Haven Demand

Gold rose to around $3,000 per ounce on Tuesday, rebounding from a near four-week low hit in the prior session, as concerns that an escalating trade war could trigger a global recession drove haven demand.

On Monday, President Donald Trump threatened to impose an additional 50% duty on China starting Wednesday unless Beijing withdraws its 34% retaliatory tariffs.

At the same time, the EU proposed counter-tariffs of 25% on a range of U.S. goods.

Meanwhile, investors are closely watching the minutes from the latest Federal Reserve meeting, due Wednesday, as well as the consumer inflation data on Thursday and the producer price report on Friday, for further cues on the Fed’s monetary policy outlook.

Bullion is up more than 13% this year, despite falling for three previous sessions.