After hitting two-week lows in the previous session amid the intensifying US-China trade conflict gold prices traded lower on Wednesday, dropping back below $1,200 in early U.S. trading.
Spot gold was up 0.1 percent at $1,196.59 an ounce after hitting its lowest level since August 24 at $1,187.21 on Tuesday. US gold futures were marginally lower at $1,201.90 an ounce.
December gold futures were last down $2.80 an ounce at $1,199.40 while December Comex silver was last up $0.007 at $14.16 an ounce.
World stock markets were likewise mixed, with European stocks mostly up and Asian equities mostly down. U.S. stock indexes were pointed toward slightly firmer openings in anticipation of the New York day session. There appears to be some risk aversions in the marketplace so far in the week, despite looming trade and secondary currency matters that could upset traders and investors in the near term.
Investors have been bracing for the protracted trade war between the world’s two biggest economies as China says it would seek permission from the World Trade Organization to impose sanctions on the US next week for non-compliance related to a ruling regarding US dumping duties.
Additionally, reports suggest that China may be putting off acceptance of license applications from American businesses hoping to operate in the country, as the Trump administration prepares to impose tariffs on all $500 billion-plus imports from China.