Investing.com - Gold prices eased, but remained close to a six year high on Wednesday in Asia as fears over the global economic impact of the prolonged trade war between the U.S. and China weighed on market sentiment.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange were down 0.4% to $1,545.25 a troy ounce by 12:07 AM ET (4:07 GMT). In the previous session gold futures rose $14.60, or 1%, to settle at $1,551.80 an ounce, the highest close since April 2013.
Prices of the yellow metal slid as investors locked in profits following Tuesday's gains. Gold has been boosted by a flight to safety as the trade war between the U.S. and China escalated. Increased safe haven demand has also send bond yields tumbling. The yield on the benchmark 2-year Treasury note fell to 1.526% overnight, creating an inverted yield curve.
The phenomenon raised concerns of a potential recession. The last time the long-term yield fell below a short-term yield was in December 2005, two years before the Great Recession, according to CNBC.
The U.S. yield curve inversion sent U.S. stocks down overnight.
Gold has risen around 7% so far this month and is up nearly 18% so far this year as trade uncertainty buoys the appeal of the asset as a store of value.