Investing.com - Gold prices edged higher on Monday, reclaiming the key $1,200-level amid renewed fears over an escalating trade war between the world's two largest economies.
Comex gold futures were up $2.00, or 0.2%, at $1,203.10 a troy ounce by 9:00AM ET.
Meanwhile, spot gold was trading at $1,200.08 per ounce, up $5.80, or 0.5%.
Market focus will largely be attuned to the next potential steps in the tit-for-tat trade dispute between the U.S. and China.
U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday, according to a senior administration official.
The tariff level will probably be about 10%, the Wall Street Journal reported, far below the 25% the administration said it was considering for this possible round of tariffs.
The WSJ later reported that China may decline to participate in proposed trade talks with the U.S. later this month if the Trump administration moves forward with additional tariffs on imported Chinese goods, as Beijing won't negotiate under threat.
Officials are also considering potential retaliation steps, the report said.
Investors have shunned gold despite an escalation in global trade tensions, indicating that the precious metal may be losing its safe-haven status.
Instead, market players opted to pile in to the U.S. dollar in the belief that the United States has less to lose from the dispute.
In other metals action, silver futures were 9.3 cents, or 0.6%, higher at $14.23 a troy ounce.
Platinum was up 0.5% at $802.40, while palladium gained 0.3% to $972.90.
December copper slumped 1.7 cents, or 0.6%, to $2.630 a pound.
Copper prices have been hit by fears that a trade spat between the U.S. and China will act as a drag on the Chinese economy, undermining demand for metals used in construction and manufacturing.
China accounts for about half the world’s demand for copper and other industrial materials.