WASHINGTON (dpa-AFX) - Gold prices inched higher on Monday after U.S. President Donald Trump vowed to hike tariffs on China, citing slow progress in trade talks between the world's two largest economies.
Spot gold inched up 0.2 percent to $1,281.62 per ounce, while U.S. gold futures were up 0.1 percent at $1,282.85 an ounce.
Trump tweeted on Sunday that talks toward a trade deal with China were proceeding 'too slowly', and that he would raise tariffs on USD 200 billion of goods to 25 percent on Friday from 10 percent.
Trump also added that would target a further USD 325 billion of Chinese goods with 25 percent tariffs 'shortly.
Following Trump's threats to slam higher tariffs, the South China Morning Post newspaper reported, citing sources that Beijing is considering canceling the 11th round of trade talks with U.S. officials later this week. However, China's official response is awaited.
Trump's comments unsettled investors who had been anticipating a trade deal as early as this week.
China's benchmark Shanghai Composite index plummeted 5.6 percent while Hong Kong's Hang Seng index ended down 2.9 percent. Major European indexes are down around 2 percent.
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