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Gold prices inched higher on Wednesday as the dollar weakened despite renewed concerns about the U.S.-China trade war.
Spot gold was up 0.55 percent at $1,203.28 an ounce while U.S. gold futures were up by 0.4 percent at $1,207.90 an ounce.
The U.S-China trade conflict looks set to escalate after China said it would retaliate by imposing tariffs on $60 billion worth of U.S. goods, effective September 24th.
The Chinese tariffs will reportedly range from 5 percent to 10 percent after China previously earmarked some goods for a 20 percent levy.
Global equity markets shrugged off trade worries as investors looked past the latest escalation in the US-China trade conflict and remained hopeful that China and the U.S. will resume contentious trade talks after the latest tariff round.
In addition, speculation is rife that China will increase economic stimulus to soften the blow of the higher U.S. tariffs.
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