Gold prices inched higher on Tuesday in Asia as equities eased following reports that the U.S. is considering imposing new tariffs on European goods.
Gold futures traded on the Comex division of the New York Mercantile Exchange were up 0.1% to $1,303.55 an ounce by 1:20 AM ET (05:20 GMT).
Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies was little changed at 96.613 after data showed the country’s factory goods orders were largely in line with expectations and did little to ease worries about a slowdown in the economy.
Equities and other risk assets lost momentum today after the U.S. Trade Representative proposed tariffs against the EU on new passenger helicopters, various cheeses and wines, ski-suits and certain motorcycles
The move is retaliation for over $11 billion worth of damage from EU subsidies to Airbus, a rival of Boeing (NYSE:BA), that the World Trade Organization said has “repeatedly” caused “adverse effects” to the U.S.
Traders are also monitoring development in the conflicts in Libya as more geopolitical flash-points in the Middle East could hurt risk assets and boost demand in the safe-haven gold.
In the U.K., Prime Minister Theresa May will meet German Chancellor Angela Merkel and French President Emmanuel Macron on Tuesday before heading to the EU summit the next day to request another Brexit delay.
On the Sino-U.S. trade front, officials from the two sides will resume negotiations this week remotely after the last two rounds of trade talks concluded in Beijing and Washington respectively earlier this month.
It was reported that the two sides are moving “closer and closer” to a trade agreement, although they are still trying to work out certain details concerning the deal.
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