WASHINGTON (dpa-AFX) - Gold prices moved higher on Monday as traders sought the safe-haven asset amid fears of a recession due to an escalation in U.S.-China trade dispute.
Geopolitical tensions in the Middle East, the anti-government protests in Hong Kong and the political uncertainty in Italy forced investors to stay cautious with regard to riskier assets.
The dollar weakened amid speculation the Fed will come up with more monetary easing in the foreseeable future.
The dollar index, which declined to a low of 97.32, recovered some lost ground and was last seen hovering around 97.40, down by about 0.1% from previous close.
Gold futures for December ended up $8.70, or about 0.6%, at $1,517.20 an ounce.
On Friday, gold futures ended down $1.00, or about 0.07%, at $1,508.50, off the session's high of $1,521.10.
Silver futures for September ended up $0.140, at $17.701 an ounce, while Copper futures for September settled at $2.5850 per pound, losing $0.0040.
Trade worries resurfaced last week after U.S. President Donald Trump said the U.S. is 'not going to do business' with Chinese tech giant Huawei and that he is 'not ready' to make a trade deal with China, suggesting the U.S. could skip the next round of trade talks in September.
'We'll see whether or not we keep our meeting in September. If we do, that's fine. If we don't, that's fine,' Trump said. 'But it's time that somebody does what we're doing.'
Political uncertainty in Italy and the anti-government protests in Hong Kong that resulted in the Hong Kong International Airport canceling all departures on Monday also weighed on investor sentiment.
Goldman Sachs cut its U.S. fourth-quarter growth forecast by 20 basis points to 1.8% over the weekend and said a U.S.-China trade deal was unlikely before the 2020 U.S. presidential election.
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