WASHINGTON (dpa-AFX) - Gold prices rose on Wednesday amid signs of an escalation in the China-U.S. trade conflict. The U.S. dollar edged higher against a basket of currencies, helping limit the upside to some extent.
Spot gold rose 0.3 percent to $1,283.37 per ounce, while U.S. gold futures were up nearly half a percent at $1,282.85 an ounce.
Global equities tumbled as global uncertainties such as rising trade conflicts between the world's two largest economies, concerns over high budget deficit in Italy and political disarray in Europe pushed investors to safe-haven assets.
Trade worries deepened after the People's Daily newspaper claimed that Beijing was ready to use its dominance of rare earths as a counter in its trade battle with Washington.
The U.S. imports about 80 percent of its rare earth elements, used in a host of electronic components, from China.
In another development, Huawei Technologies Co Ltd has filed a motion for summary judgment in its lawsuit against the U.S. government.
'The U.S. government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke. Only speculation,' the company's chief legal officer Song Liuping said in a statement.
Earlier this week, U.S. President Donald Trump said in a news conference with Japanese Prime Minister Shinzo Abe that he was 'not ready to make a deal with China,' dealing blow to hopes of a lasting deal.
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